“We are paying a fortune in annual health insurance,” my husband, Luca, recently yelped at me. “Please help me figure out a way to lower this cost.” Unfortunately, after some investigation, I unhappily reported to my disappointed hubby that finding a low-cost, family friendly insurance plan in Shanghai is no easy task.

“Most people are surprised to learn that China is one of the most expensive countries for international medical insurers,” reveals Gus Giraldo, Senior Vice President of Healthcare Products, for CIGNA International, China. Coverage for a family of four in Shanghai could cost as much as RMB135,000, estimates Valerie Lu, Business Manager at Pacific Prime Insurance.

The most obvious ways to reduce your health insurance costs are to settle for more restrictive benefits or forgo coverage altogether. For most families with young children living in a foreign country, this is not a desirable alternative.

“As a father of three, I can attest that every child ensures a lifetime of medical bills, even just for basic medical needs,” says Giraldo. “You want the optimal flexibility to do what you need to do to get you or your family members better without having financial considerations get in the way at that critical moment.”

Opting for a budget insurer is likewise not a wise decision. “If you are paying significantly less for the same coverage, it is likely that the insurer has more restrictive terms and conditions which make it more difficult to get reimbursed,” warns Giraldo. “Always look at how claims are settled by your carrier and make sure that the insurer is licensed to do business in China so you can resolve disputes locally.”

Given that there is no way out of paying hefty premiums, families should at least know what they are paying for. Key areas for parents to investigate include: costs of adding more children, maternity waiting periods, delivery coverage, well -baby checkups, vaccinations, orthodontic and routine dental exams and private rooms in the event of hospitalization.

Non-Mandarin speaking expatriates should also make sure that their plans cover care VIP or international wards of local hospitals and or private expatriate clinics. Adequate coverage outside of China for complicated procedures and or emergencies during family holidays are likewise key considerations.

While challenging, finding an affordable family insurance plan is a must. As I always say: “Better safe than sorry!”

Are you covered by health insurance in Shanghai? How did you find the right plan for you?