In this edition we will take a closer look at the health and safety of living in China, discussing issues such as medical/health insurance and the relative safety of living in China. This topic seems particularly relevant after the recently contained SARS outbreak. We hope to reassure all of you out there, that China is a safe place to live, but like any other place, a good dose of common sense goes a long way towards protecting the health of ourselves and family members.

We hope you enjoy this month’s newsletter and we look forward to receiving your comments and suggestions on any improvements. .

Cheers,

Medical protection, as an employee benefit, should be a top priority for all internationally active organizations. It protects both the employee and the employer from potential financial hardships or even financial disasters, especially in the case of medical emergencies. In a developing market for the insurance industry, such as China, how can employees of corporations, schools and organizations ensure that their employers have provided them and their families with suitable coverage according to their employment and their lifestyles?

A couple of questions for both the employee and the employer to begin with are, “Who decides which healthcare plan is suitable?” And “How often is this decision reviewed?” Sometimes companies just assume that their HR experts will have done their due diligence and that suitable coverage is in place. Unfortunately, with budget considerations and management decisions coming oftentimes from multiple regions around the world, what is very much needed is often overlooked. Specifically in mainland China, it has often been the case that the decisions are made in Hong Kong, or even farther away, by a person who has not been to China in recent years and who has never heard of or assisted in a medical situation for an employee or their family in China. Without such experience, these decision makers have little way of knowing that medical costs in China are comparable to the high prices of North America, and can sometimes even exceed them, particularly when a medical evacuation is involved. The consequence of such inexperience and lack of communication with the mainland experts can result in disasters.

Basic criteria about how to assess insurance policies applies anywhere in the world, but as an employee, volunteer or employer with operations in China where HR experience in this field can be limited, it is strongly advised that you take the responsibility to eliminate doubts about your coverage. Check your policy wording; make sure it is in a language you can understand and that you don’t have to translate.

If you don’t have the terms in writing, ask for them. Find out, what is the currency of your policy, US dollars, GB Pounds, Euro, HK$ or Renminbi? If you have a Renminbi-based policy, how will this work when you travel to Sydney or New York on a business trip? Equally important to know is, if you have a question about a claim, whom and where do you call?

'Acupuncture Department' Doctor "Any sensation?" Bureaucrat "None at all!" This cartoon appears with the permission of the author, Hua Junwu, whose cartoons were first published in 1930. His latest collection "Satire and Humour from a Chinese Cartoonist's Brush" featuring works from 1983-1989, is published by China Today Press, and distributed by the China International Book Trading Corporation (Guoji Shudian).

What is the annual or per illness limitation of your policy? Some regionally-organized plans have limitations on daily hospital room rates and procedural or consulting fees, which would be exceeded by the international wings of the Chinese hospitals. Such plans are not meant to cover the international employee. Daily private and semi-private room rates of western-run facilities in Shanghai and Beijing can exceed $800. Will your policy cover most of, if not 100%, of this? International plans designed for the mobile employee are priced in hard currency and designed to apply worldwide, not just in China – does this sound like your plan?

What about sports – are your children covered for after school sports? Are you covered for your weekend rugby or rock climbing? Does your plan cover for business and personal trips outside of China? Will it cover you for that holiday to Lhasa, including the hike to the Everest Base Camp? Sometimes policies are designed to cover employees whilst they are at work and for nothing more. Would you like to find out such information after you’ve had an accident and have paid a RMB20,000 deposit in the military hospital in Yunnan? – Probably not.

It’s always a good time to review your medical policy, its benefits and limitations. Ask questions and raise the issues about your personal and professional protections on an annual basis, at minimum. Policies are renewed annually, therefore everything can change year-to-year. In international organizations the reality is that it is up to you to ensure that such vitally important matters do not fall through the cracks.

For further information and advice, can refer you to China medical facilities and experts in the area of employee benefits.

Information provided by:

Paige Mushinsky Benefits Consultant © Paige Mushinsky 2004

Giorgio Armani arrived in person last month at his new store opening on Shanghai's fashionable, riverfront Bund. The store, which joins many well-known designer boutiques and luxury car showrooms, is set in a newly-refurbished 1916 building in one of Shanghai's most upmarket areas.

Shanghai International Film Festival

Shanghai's International Film Festival will be held this June (5-13) in the beautiful seaport city. The festival, now in its 7th consecutive year, attracts international interest.

The World Doesn't Come to China...