I'm Self-Employed. How Can I Buy A Health Insurance Policy?

Most self-employed foreign nationals in China will need to source their own private health insurance, as they will not be automatically given an insurance package as when employed under a company.

Expatriates often need health insurance coverage at English speaking private hospitals as the local healthcare system can be difficult for most expats to navigate due to lack of English availability, crowdedness and overall not very foreigner-friendly.?

In case of an unexpected medical situation, as an expat it is important to get adequate insurance coverage to ensure hazard-less procedures to get you back on track as soon as possible.

There are different types of health insurance you could get in China as a self-employed person, including social medical insurance offered by the government, private health insurance and group health insurance offered by various insurance companies.

Social insurance?in principle is a compulsory insurance scheme for any person legally employed in China. Social medical insurance as part of the social insurance scheme provides basic medical cover at public hospitals in the city you are located in. Note that each city’s social medical insurance benefits and contribution can differ from each other.

Though it covers a variety of medications and treatments, it comes with limitations on them along with deductibles and co-payments as well. International departments at public hospitals will be excluded from social insurance coverage.

Private health insurance, or also known as commercial health insurance, is offered by various health insurance providers that include more comprehensive benefits comparably. They could normally cover the private hospitals including international departments at public hospitals, with direct-billing where you do not need to pay upfront.

Their coverage could extend to various treatments including cancer treatments, mental health, physiotherapy, dental, physical check-ups and so on, other than regular inpatient and outpatient care. They could also cover internationally other than China coverage, with direct-billing both domestically and internationally.

Zero deductible and co-pay options are often available where it can be covered for 100% without out-of-pocket amount, up to the benefit limits on each policy.

Group health insurance?is a type of private health insurance catered for employees in a company, where the employer acts as the policyholder with several employees acting as the insureds. Such insurance is only eligible for registered companies and certain institutions. Individuals will not be eligible for such insurance policy. Normally you need at least 3 full time employees to be eligible for a group health insurance policy.

Group health insurance policies normally charge a slightly lower premium compared to an individual policy with similar benefits. They could also provide more lenient medical underwriting methods such as LMHD (Limited Medical History Disregarded) and MHD (Medical History Disregarded) when you reach a certain number of employees under a group policy.

Group health insurance plans come with fixed plans (a.k.a. SME plans) and customizable plans. SME plans come with fixed benefits and adjustable premiums (according to the age details of the employees), and customizable plans are for specifically large groups where benefits and premiums are customizable according to the age details, claim history, industry type and career type of the group.

Premiums of a group health insurance policy can be according to different age bands, or universal rates. The latter normally requires a large number of employees to join in order to be eligible.

How can I get a quotation for a health insurance policy?

There are many insurance providers operating in China that offer private health insurance plans eligible for foreign nationals, such as AXA, Allianz, MSH, Ping An, Medilink, GBG and so on. Most of them offer both domestic and international cover health plans that are catered to expatriates’ needs. Normally an insurance broker could help find a suitable insurance package for you according to your needs and budget.

Do health insurance brokers in China charge a fee?

Currently there are no additional fees for consulting a broker for insurance inquiry; the quotations given by the insurance companies will be the final amount payable at most of the times. It is advised to look at the breakdowns (if any) before you proceed.

What documents are required for self-employed persons to apply for a health insurance policy here? Can I get a fapiao (invoice) under my company’s name for tax purposes?

If you need a fapiao under your company’s name when buying a health insurance policy here, you will need to provide documents including your copy of passport, business certificate, stamped payment declaration letter (if it is only for yourself), along with application form, health questionnaire and entrustment of brokerage services agreement (if you are signing up via a broker).

Most insurance companies require you to pay from your company’s bank account to issue a fapiao under your company’s name; a few may allow you to pay from your personal bank account and still able to issue a company fapiao for you. It is suggested to obtain detailed information before you proceed.

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.

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.