Replies to LegCo questions

LCQ5: Long-term health care financing arrangement

Following is a question by the Hon Kwok Ka-ki and a written reply by the Secretary for the Health, Welfare and Food, Dr York Chow, in the Legislative Council today (April 20):


Question:


It has been reported that the Secretary for Health, Welfare and Food has advised that a public consultation on providing tax concession for expenses on taking out medical insurance will be conducted at the end of this year. In this connection, will the Government inform this Council:


(a) whether any reference to relevant experience in foreign countries has been made; if so, of the details;


(b) of the consultation period for the above plan and the timetable for the implementation of the relevant policy;


(c) whether it has assessed the impact of the implementation of the above plan on the development of public and private medical services, and whether the plan will address the problem that the majority of medical services are being provided by the public health care system; and


(d) of the estimated annual tax revenue foregone due to the implementation of the above plan, and whether the demand on public medical services will thus be reduced; if so, of the estimated annual saving in this respect?


Reply:


Madam President,


(a) ¡V (d) Our existing public health services are highly subsidized. Given an aging population, rising expectations of the community and escalating medical cost due to technology advancement, the financial sustainability of our health care system has been an important subject which draws the attention of the Government.


In the 2005 - 06 Budget, the Financial Secretary has pointed out the Government would consider the tax arrangements related to health insurance when examining the overall health care financing options. The reconstituted Health and Medical Development Advisory Committee (The Committee) will explore and deliberate on possible financing options and formulate future strategies on health care services. We will undertake studies and make reference to relevant experience in other jurisdictions; and assess the impact of various financing options on the developments of public and private health care. Private health insurance is one of the health care financing options. We will also study the impact of providing tax concession for expenses on taking out insurance when considering various financing options.


The Committee has already begun its work and we envisage that it will submit its interim report on long-term health care financing arrangement by the end of this year.




Ends/Wednesday, April 20, 2005

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