ARTICLE

What Is VHIS? Guide to VHIS Tax Deduction & Medical Insurance Differences

10-min read

Updated on 2026-3-31

Author: AIA Content Editorial Team

A young couple browsing VHIS and medical protection information.

With medical inflation continuing to rise¹, health insurance has become increasingly important. The Voluntary Health Insurance Scheme (VHIS) in Hong Kong was officially launched on 1 April 2019. But what is VHIS (Voluntary Health Insurance Scheme)? How does it differ from traditional medical insurance? And how should you choose among different plans? This article explains the key features of VHIS Hong Kong, including how the tax deduction works, the main coverage features, and the differences between the Standard Plan and Flexi Plan. With this guide, you can make a more informed decision based on your budget and protection needs.

What Is VHIS? Understanding a Government-Regulated Health Insurance Scheme

The Voluntary Health Insurance Scheme (VHIS) is a policy initiative introduced by the Health Bureau of the Hong Kong Special Administrative Region Government for individual indemnity hospital insurance products². Insurance companies participating in the scheme must offer certified products that comply with standardized terms set by the government. Key features of VHIS include guaranteed renewal up to age 100 regardless of changes in the insured person's health condition, no lifetime benefit limit under the Standard Plan, and coverage for day-case procedures (such as medically necessary endoscopy) as well as unknown pre-existing conditions at the time of policy purchase².

For newcomers who have recently arrived in Hong Kong, government-regulated products like VHIS offer greater transparency and confidence. Each certified plan is assigned a unique registration number and listed on the official VHIS website, allowing consumers to clearly review and compare policy terms before purchasing.

You may also explore various government-certified VHIS plans to ensure the policy meets regulatory standards while qualifying for tax deductions.

VHIS vs Traditional Medical Insurance: Key Differences

There are many medical insurance products in the market. Compared with traditional medical insurance, VHIS Hong Kong provides several notable advantages across multiple areas (information updated as of February 2026):

Tax Deduction

Taxpayers who purchase certified VHIS plans for themselves or specified relatives can enjoy tax deductions. The maximum deduction is HKD 8,000 per insured person per year³. Traditional medical insurance plans generally do not offer this tax deduction benefit.

Coverage for Unknown Pre-existing Conditions

Traditional medical insurance generally does not cover any conditions that existed before the policy was purchased, including illnesses that had not yet been diagnosed at the time of application. In contrast, the Voluntary Health Insurance Scheme (VHIS) requires coverage for unknown pre-existing conditions, with a defined reimbursement schedule: 0% coverage in the first policy year, 25% in the second year, 50% in the third year, and 100% full reimbursement from the fourth year onwards⁴.

Guaranteed Renewal Period

All VHIS plans must provide guaranteed renewal up to age 100. Insurance companies cannot refuse renewal or impose additional premium loading solely due to changes in the insured person's health condition⁵. Traditional medical insurance policies may have stricter renewal terms or lower maximum renewal ages.

Treatment for Congenital Condition

VHIS covers diagnostic tests and treatment for congenital conditions diagnosed when the insured person is age 8 or above⁴. In many traditional medical insurance policies, congenital conditions are commonly excluded.

Standard Plan vs Flexi Plan: Key Considerations When Choosing a VHIS Plan

Certified VHIS Hong Kong products are divided into two categories: Standard Plans and Flexi Plans⁶. Consumers can choose based on their financial ability and expectations for medical services:

1. Standard Plan

Standard Plans provide a uniform minimum level of protection, including basic hospitalisation and surgical expenses, prescribed non-surgical cancer treatments, and psychiatric inpatient treatment. It is suitable for individuals with limited budgets or those who only require basic medical protection. Since the product structure of Standard Plans offered by different insurers is largely similar, consumers mainly compare the premium levels and customer service quality among insurance companies.

2. Flexi Plan

Flexi Plans provide enhanced coverage based on the Standard Plan, such as higher benefit limits, higher ward class options (e.g., semi-private or private rooms), and additional benefits like outpatient or dental coverage. For individuals approaching retirement, the risk of higher medical expenses may increase with age. When comparing VHIS plans, one consideration may be whether the enhanced protection and additional benefits offered by a Flexi Plan align with your budget, protection needs, and expectations for medical services.

Click here to explore AIA's medical protection solutions.

VHIS Tax Deduction: How Much Tax Can You Save Each Year?

According to the Hong Kong Inland Revenue Department, premiums paid for the Voluntary Health Insurance Scheme (VHIS) are eligible for tax deductions. If a taxpayer purchases VHIS policies for multiple family members, the deductions can be combined. Premiums paid for the taxpayer or specified relatives — including a spouse, children, parents, grandparents, and siblings — may be claimed for tax deduction, subject to a maximum of HKD 8,000 per insured person per year⁷.

For example:

If a taxpayer paid qualified VHIS premiums during the 2024/25 tax year for themselves, their spouse, and their child in the amounts of $10,000, $6,000, and $2,000 respectively, and the maximum deduction per insured person is $8,000, the total deductible amount for that year would be $16,000.

This is calculated as the taxpayer's maximum deduction ($8,000) plus the deductions for the spouse and child ($6,000 + $2,000) = $16000.

For more details on tax deduction arrangements^#, you may refer to the Inland Revenue Department's VHIS FAQ.

For individuals with stable income, purchasing a VHIS plan based on the medical needs of yourself and your family can help reduce your current tax burden. You may also explore other smart tax-saving strategies, including additional examples of VHIS tax deductions^#.

Voluntary Health Insurance Scheme (VHIS) FAQs

VHIS generally accepts applicants aged 15 days to 80 years. Participating insurers are required to consider applications from Hong Kong residents within this age range. As for non-Hong Kong residents, including new arrivals to Hong Kong, whether an application will be accepted depends on the individual insurer's business rules and underwriting arrangements. However, the final underwriting result (including premium loading or exclusions) will depend on the applicant's health condition.

Company medical insurance usually provides only basic protection and typically terminates when the employee leaves the company or retires. For those who wish to plan ahead for their personal medical protection, VHIS Hong Kong may serve as one of the supplementary options alongside employer medical coverage, helping address protection needs at different life stages.

Anyone may apply for VHIS through an insurance company, which will decide whether to accept non-local applications based on their business policies. However, for tax deduction claims^# on VHIS premiums, the relevant tax requirements must be met. These include, among other things, that the insured person must be a Hong Kong resident, and that the policy as well as the relationship between the policyholder and the insured person must satisfy the relevant requirements⁸.

If you wish to transfer an existing traditional medical insurance policy to a certified VHIS product, insurers may offer conversion options. However, when switching to another VHIS-certified product, insurers may require new health declarations and underwriting. It is advisable to consult a professional financial advisor before making a transfer decision.

^{*This information is owned by AIA, and may not be copied or reproduced without AIA’s written consent. You may not copy or store this content on any other website or content platform.}

^{This information is for general reference only and does not constitute sales advice, product recommendations, or service offers. Before purchasing an insurance product, customers must complete a financial needs analysis. AIA does not guarantee the accuracy and completeness of the content and information provided. AIA reserves the right to pursue legal action and seek compensation for any infringement and/or legal issues. "Hong Kong" herein refers to "Hong Kong Special Administrative Region".}

^{^#Tax deductions is one of the allowable deductions from assessable income, it does not equate to a direct deduction from total tax payable. For details of tax deductions, please visit Inland Revenue Department (IRD) of HKSAR website and consult your tax and accounting advisors for tax advice.}

^1.WTW. 2026 Global Medical Trends Survey. [Online sources]. Accessed on 27 February 2026.

https://www.wtwco.com/en-hk/insights/2025/10/2026-global-medical-trends-survey

^2. Health Bureau. Voluntary Health Insurance Scheme. [Online sources]. Accessed on 27 February 2026. https://www.vhis.gov.hk/doc/en/information_centre/e_standard_plan_template.pdf

^3. Inland Revenue Department. Tax Deduction for Qualifying Premiums Paid under the Voluntary Health Insurance Scheme (VHIS) Policy. [Online sources]. Accessed on 27 February 2026.

https://www.ird.gov.hk/eng/faq/vhis_qp.htm

^4.Voluntary Health Insurance Scheme. Key Features of Certified Plans - Coverage extended to include. [Online sources]. Accessed on 27 February 2026. https://www.vhis.gov.hk/en/about_us/scheme.html

^5.Voluntary Health Insurance Scheme. Key Features of Certified Plans - Greater protection and transparency. [Online sources]. Accessed on 27 February 2026. https://www.vhis.gov.hk/en/about_us/scheme.html

^6.Voluntary Health Insurance Scheme. Identification of Certified Plans - Standard Plans and Flexi Plans. [Online sources]. Accessed on 27 February 2026. https://www.vhis.gov.hk/en/consumer_corner/list-plans.html

^7.GovHK. Tax Deduction for Qualifying Premiums Paid under the Voluntary Health Insurance Scheme (VHIS) Policy. [Online sources]. Accessed on 27 February 2026.
https://www.gov.hk/en/residents/taxes/salaries/allowances/deductions/vhis.htm

^8.Health Bureau. Information Centre. [Online sources]. Accessed on 27 February 2026.

https://www.vhis.gov.hk/en/info_centre/faqs.html