Case Study: Shanghai Expat Fell While Hiking That Cost Him 300k

Many expats living in China like to go hiking once in a while, as a refreshment from the busy life in the city.

While hiking is fun, it is important to be well geared and prepared, as accidents can happen. And when they happen, they may catch you off-guard.

In the following scenario, a Shanghai expat named Jordan accidentally fell while hiking,?resulting in a complex fracture that required orthopedic surgery. The total cost for the emergency treatment, surgery, hospital stay, and rehabilitation was estimated to be around 300,000 RMB.

Below is a breakdown of the total medical costs of Jordan:

• Emergency Services and Initial Treatment: 20,000 RMB
• Orthopedic Surgery: 150,000 RMB
• Hospital Stay (1 week): 50,000 RMB
• Rehabilitation and Physiotherapy: 30,000 RMB
• Medication and Follow-up Visits: 50,000 RMB
• Total Estimated Cost: 300,000 RMB

Luckily, Jordan was insured under a comprehensive health plan that covered both inpatient and outpatient services, with?direct billing feature that allowed the hospital to directly communicate with the insurance provider for the costs incurred above the deductible. This meant that Jordan did not have to worry about the financial aspect of the treatment and could focus on recovery.

Here is a summary of Jordan’s insurance coverage details:

• Annual Deductible: 5,000 RMB
• Insurance Payout: 295,000 RMB (covered after deductible)
• Out-of-Pocket Expense for Jordan: 5,000 RMB (deductible)

The insurance also covered the cost of rehabilitation and physiotherapy, which was crucial for Jordan's quick recovery. The follow-up visits to the orthopedic surgeon were also covered under the outpatient services of the plan.

This scenario illustrates the importance of having a well-rounded health insurance plan that covers a wide range of medical services, including emergencies and rehabilitation, which can be quite costly in China. It also shows the benefit of having a plan with a direct billing feature, which can alleviate the stress of dealing with hospital bills during a medical crisis.

Note: the scenario was a hypothetical case study based on the overall experiences of expats in China, and no real private individual’s information is shared.

About the author

I'm an insurance broker at Mingya Insurance Brokers based in Beijing, and my company works with multiple insurance companies in China providing insurance plans eligible for expatriates in China. Our insurance partners include AXA, Allianz, AIG, Bupa, Cigna, GBG, MSH, Medilink, Ping An etc.

I specialise on insurance solution planning for expatriates in China, particularly health insurance. I have been assisting expatriates in China with their insurance solution planning since 2018, as well as group insurance planning for corporates and institutions' foreign employees. Currently our clientele includes international schools, foreign enterprises, embassies and so on.

I was born in Beijing, and am able to communicate in fluent English and Mandarin. I held a financial advisor's license issued by the Monetary Authority of Singapore (MAS) for 2 years, and I am currently holding an insurance broker's license issued by the China Banking and Insurance Regulatory Commission (CBIRC) since 2018.