By Fineline Cube The National Administration of Financial Regulation (NAFR) in China has issued a Notification indicating that improved tax benefits and coverage terms will be offered to those purchasing private health insurance. This initiative, aimed at driving a greater variety and quality of private health insurance offerings for consumers, will take effect from August 1, 2023.
Key Terms of the Notification:
The scope of commercial health insurance products applicable to individual income tax preferential policies will be expanded to include all insurance products for medical, long-term care, and specific diseases. This expansion is expected to increase the accessibility and affordability of private health insurance for a broader range of consumers.
Non-Discrimination for Pre-Existing Conditions and Family Coverage:
Insurers are prohibited from refusing consumers with pre-existing health conditions, ensuring equal access to insurance coverage. Additionally, insurance products should be extended to cover not only the policyholder but also their spouse, children, and parents, enhancing the comprehensiveness of the coverage provided.
Establishment of a Unified Information Platform:
An industry-wide unified commercial health insurance information platform will be established to regulate tax deductible insurance purchases, streamlining the process for consumers and ensuring transparency in the industry.
Expansion of Tax Deductions for Private Insurance:
China first allowed tax deductions of up to RMB 2,400 per year for those purchasing private insurance from 2017. This week’s notice serves to expand the range of health insurance products eligible for this benefit, encouraging commercial health insurance providers to develop a greater variety of fairly priced products offering a broader range of long-term coverage.
Coordination with National Basic Medical Insurance (BMI) System:
The notice also encourages the coordination of private health insurance with the national Basic Medical Insurance (BMI) system, including efforts to contain medical expenditures, thereby integrating private health insurance as a complementary layer to the public healthcare system.-Fineline Info & Tech