Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
benefits that truly benefit
DungPhuong Nguyen
MMB Leader, Vietnam
Sep 2020
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Table of contents
01 02 03
04 05
About Vietnam
Benefit Trend
Common Benefit
Coverage
Healthcare
Landscape
Key Highlights
on Renewal
Process
06Covid19 Latest
Update
benefits that truly benefit
DungPhuong NguyenMMB Leader
Mercer Marsh Benefits Vietnam
Current Role
Responsible for ensuring delivery of benefits broking and consulting services for employee benefits in
Vietnam. Her role is to ensure that MMB offer a professional level of care to the clients and the services
run smoothly, accountability and efficiently
Has extensive experience in developing new and innovative employee retention solutions, benefits
administration, underwriting and pricing
Develops & implements successfully employee engagement activities as well as health management and
wellness solutions
Experience
DungPhuong has over 10 years of insurance broking & consulting in employee benefits related products &
services. Before joining MMB Vietnam in 2015, DungPhuong performed several senior roles in business
development, business partnership engagement & played the role of senior client relationship officer in
insurance industry
benefits that truly benefit
About Vietnam
Copyright @ 2020 MMB (Vietnam). All rights reserved.
About Vietnam
96.46 MTotal population of Vietnam in 2019
71 : 79Male : Female
Life expectancy at birth (2018)
57.79 MTotal labor force (2020 est.)
$261.6 BnGross Domestic Product in 2019
7% growth
4% inflation
14% medical inflation
2.0%Unemployment rate, 2019
Second quarter 2020: 2.7%
$132 - $190Vietnam’s current minimum monthly wage varies depending
on region
1 USD = 23,000 VND
Copyright @ 2020 MMB (Vietnam). All rights reserved. Source: The World Bank 2020
Benefits Trends Around The World Mercer 2019
63Provinces & 5 municipalities - Hanoi,
Ho Chi Minh City, Can Tho, Danang & Haiphong
Copyright @ 2020 MMB (Vietnam). All rights reserved.
About VietnamIndustry development strategy to 2025
• Engineering and metallurgy
• Chemical
• Agriculture, forestry and
fisheries processing
• Garment and textile, footwear
• Software development
• Digital content
• Information technology
services
• Medical electronics
Electronics and
telecommunications
Processing and
manufacturing
industries
New energy and
renewable energy
• Wind
• Solar
benefits that truly benefit
Healthcare Landscape
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Doctor per 1,000 population Nurse per 1,000 population Pharmaceutical personnel per
1,000 population
0.8 1.4 0.3
Healthcare LandscapeHealthcare Infrastructure
Health workforce per population
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Healthcare LandscapeHealthcare Infrastructure
From 2018, public hospitals, mostly provincial and central level,
have been operating autonomously – they are no longer dependent
on the direct budget subsidy for their operating cost
Creation of new privately funded hospitals and clinics. This new
private healthcare infrastructure may position itself to service the
high-end segment of the healthcare market tapping into the
significant spending by local patients going abroad for operations
and other treatment that could be handled domestically
New opportunities in healthcare Healthcare Facilities
Public hospitals in Viet Nam are divided into 3 levels:
• central level (47 hospitals)
• provincial level (419 hospitals)
• district level (684 hospitals)
Vietnam also has 182 private hospitals, mostly located
in urban areas
Challenges for health system:
• public hospitals suffer from overcrowding or very
high occupancy rates
• limited integration with primary health care
• cost escalation
• weak regulation framework
• inadequate monitoring undermine hospitals
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Healthcare LandscapeWhat causes the most deaths?
New opportunities in
healthcare
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Source: IHME (Institute for Health Metrics and Evaluation)
COPD: Chronic Obstructive Pulmonary Disease
Copyright @ 2020 MMB (Vietnam). All rights reserved.
How much is spent on health -- now, and in the future -- and from which sources?
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Statutory Benefits & Contributions
Company Contribution Employee Contribution
1 Social Insurance17.5% of monthly base salary that SI contribution based
on (*) effective July 1, 2017
8% of monthly base salary that SI contribution based on
(*) effective Jan 1,2014
2 Medical Insurance3% of monthly base salary that SI contribution based on
(*) effective Jan 1, 2014
1.5% of monthly base salary that SI contribution based on
(*) effective Jan 1, 2014
3Unemployment
Insurance
3% of monthly base salary that UI contribution based on
(*) effective Jan 1, 2015
1.5% of monthly base salary that UI contribution based on
(*) effective Jan 1, 2015
(*) SI contribution payment is based on the gross base salary with a cap of 20 times of the common minimum wage which is VND 29,800,000 (effective July 1, 2019)
(**) Unemployment Insurance (UI) contribution is based on the minimum monthly salary to calculate contribution to UI is the minimum regional salary and the
maximum monthly salary to calculate the contribution to UI 20 times the minimum regional salary
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Healthcare LandscapeDescription Government Health Insurance (GHI) Supplemental Health Insurance (SHI)
1 Eligibility
• Employees:
o apply for both Vietnamese and foreigner
o whose insurance are paid by the employers and employees,
employee having labor contract of fulltime 3 months and
longer term,
• Household members - dependents
• Not apply age limit
• Not apply any restriction of pre-existing condition
• Employees are eligible including Vietnamese and foreigner.
• Dependent:
o Direct dependent including children, spouse
o Indirect dependent: parents
• Age limit:
o Children: from 1 year old
o Adult: up to 65 years old & extend up to 70 (renewal
only) with loading premium
• Apply waiting period
• Not suffer from cancer, leprosy
• Not having more than 50% permanent disability
2Scope of
cover
• Main coverages: Inpatient incl Maternity (IP) and Outpatient (OP)
o Medical examination and treatment, rehabilitation, pregnancy
examination & childbirth
o Examination for screening, pre-diagnose early stage of diseases
o Treatment line transferred patients from ward-level hospitals to
higher levels such as emergency, in-patient treatment where high
technical quality is required.
o Drugs, chemicals, medical supplies, equipment and medical
technical services according to the list issued by the MOH
o Cover cost of congenital, critical illness, cancer
• Unlimited coverage amount
• Cover In & Out-patient medical expenses at all legal medical
providers, including state-owned, private & international
hospitals/ clinics
• Reimbursement up to limits/sub-limit as prior agreed policy for
all insured expenses.
• Cover for working and non-working related accidents that are
not excluded by policy
• Apply maximum annual limit of coverage
3 Exclusion• Not cover for working related accidents, occupational diseases
• Not cover for dental expenses, maternity, vision
• other common exclusions
• Not cover for congenital conditions
• Not cover for treatment arising during waiting period pre-existing
condition, chronical/critical illnesses & maternity
• Not cover for member already having cancer before joining date
• Exclusions as defined in the policy wording
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Healthcare Landscape
Description Government Health Insurance (GHI)Supplemental Health Insurance
(SHI)
4 Claim procedure
• Direct billing: service need to be alerted before treatment
• Pay first claim back
• Treatment registered facilities classified by central/provincial-city/district level
o State-owned hospitals/clinics are 100% registered
o Private medical establishments having contracts with social insurance
agencies
• Reimbursement mechanism:
o Reimbursement scale: from 40% to 100% of government tariff
o Depending on type of treatment services, joining period, treatment at
registered/non-registered facilities
• Direct billing: present insurance card
and ID card to hospital/ clinic within
direct billing network before having
treatment
• Pay first claim back
5 Pricing/ Contribution
• Monthly contribution:
o Employee : 1.5% of contracted salary with cap of VND 29,800,000
o Employer : 3% of contracted salary with cap of VND 29,800,000
• Household package: premium of participants of voluntary health insurance is
calculated as follows:
o 1st person pays 4.5% of base salary (*) (VND 804,600/ year)
o 2nd person, 70% of the first person's premium (VND 563,220/ year)
o 3rd person, 60% of the first person’s premium (VND 482,760/ year)
o 4th person, 50% of the first person's premium (VND 402,300/ year)
o From 5th person, 40% of the first person's premium (VND 321,840/ year)
(*) Base salary : VND1,490,000
• All local children under 6 years old: free of charge
• Children above 6 years old & student: member can buy GHI voluntarily via their
school. The fee is VND 563,220/ year (equivalent 70% of adult fee)
Market pricing, Annual based
benefits that truly benefit
Common Benefits Coverage
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Common Benefits Coverage Insurance Benefits
Group Term Life
Group Personal Accident
Retirement
Yes (*)
Yes (**)
Yes (***)
Yes
Yes
No (****)
(*) not apply for occupational diseases (**) not apply for labor accident (***)
contribution of 20 years to be eligible for retirement benefits (****) become a
trend
Government HI Supplemental HI
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Common Benefits CoverageHealth Benefits
Outpatient Clinical
Hospital Surgical
Maternity
Dental Care
Vision Care
Medical Check - Up
Government HI Supplemental HI
Yes
Yes
Yes
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Copyright @ 2020 MMB (Vietnam). All rights reserved.
98.8% 62% 95% 68%
Medical Life Accident Travel
Prevalence Inpatient Outpatient Dental Maternity Vision Check-up
Employee 92% 91%Included in
OutpatientIncluded in Inpatient
1% 95%
Dependent 65% 64% 1% 4.5%
Prevalence Inpatient Outpatient Dental Maternity Vision Check-up
Annual limit
Employee
Daily R&B:
VND4,200,000
VND84,000,000,
incl. surgical
VND2,800,000
VND11,500,000VND2,600,000 Included in Inpatient VND2,750,000 VND2,250,000
Annual limit
Dependent
Daily R&B:
VND4,000,000
VND75,000,000,
incl. surgical
VND2,650,000
VND10,500,000VND2,400,000 Included in Inpatient
Source: Benefits Survey 2020 - Mercer
Common Benefits CoveragePrevalence
Copyright @ 2020 MMB (Vietnam). All rights reserved.
• Minimum 5 employees
• Ready Made Package
• SME scheme (USD
2,500 for minimum fee)
• Minimum 50 employees
• Based on client’s
benefits plan & budget
Voluntary Solution
• Minimum 10 insured persons
• Premium quote on age band
• Pre-pack policy
Common Benefits Coverage
benefits that truly benefit
Key Highlights on Renewal Process
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Key Highlights on Renewal Process
• Insurer will release renewal proposal 3 months prior to policy expiry
– We can push to 4 months for certain cases and/or certain insurer but likely premium is not competitive.
– Not advisable to push for earlier than that. Most insurer can’t and those who can usually will state it as indicative.
– We have some incidents where the real proposal and indicative differ by quite a margin
• Insurer rarely provide a policy period less than 1 year, especially for new policy and will incur short term premium with higher
risk calculation
– We can harmonize policies into 1 specific date
– To achieve policy date harmonization, recommendation is to implement policy period longer than 1 year to avoid higher risk
calculation
• Insurer requires at least 5 working days to prepare a quote / proposal for each alternative benefit design.
– January Renewal is the most hectic period of the year as most Policy Period starts on 1st Jan
– Due to heavy load, expect delay from insurer in providing quote, quote revision or additional alternative design
– To ensure cashless facility is up and running by 1st Jan, Insurer require confirmation & data census by around 15 to 20 December
latest
– Payment warranty is 30 days from effective date of the policy
1
2
3
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Health Insurance Players
Top 5 Top 15 JapaneseInternationalInternational
67 INSURANCE ENTERPRISES
31 NON LIFE INSURERS
18 LIFE INSURERS
16 BROKERS
02 RE-INSURERS Copyright @ 2020 MMB (Vietnam). All rights reserved.
Pooling/Captive
Maxis/Insurope
Pooling
Swisslife
benefits that truly benefit
Benefit Trends
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Cancer & Critical
Illness
- Additional protection for
critical illness and cancer
risks
Retention Schemes
- Life insurance
- Pension
Health & wellness
program
- Preventive care
- Diagnosis & treatment
- Recovery & rehabilitation
- Bespoke health &
wellness program
Top up/Voluntary
- Enhancement to regional
/ global area of cover
- Optimization of cost vs
HR policies
Flexi Benefits/Digital
solutions
- Employee experience &
personalization
- Improve communication
& employee engagement
Copay & Deductible
- Cost sharing between
employer and employee
- Awareness of
protection/risk vs benefits
24
Benefit Trends
Copyright @ 2020 MMB (Vietnam). All rights reserved.
PHYSICAL HEALTH (98%)
Poor physical health can impact ability
to work and carries costs to the
employer and the community
FINANCIAL HEALTH (90%)
EMOTIONAL HEALTH (92%)
Resilience in times of uncertainty can
impact health and productivity
SOCIAL HEALTH (60%)THRIVING
EMPLOYEE
Social equity, trust, a support
network contribute to strong and
healthy communities.
Financial stressors can impact emotional
and physical wellbeing
Medical plan, disease management programs, subsidy
for gym memberships, nutritional counselining, health
fairs, health coaching, available „healthy“ food, etc.
Coverage for inpatient/outpatient mental health services,
employee assistance programs (EAP), resiliency programs, yoga
or mindfulness apps, stress management tools, etc.
Pension, tax-preferred retirement plans, financial
education, financial advising services, education
allowances, daycare subsidy, etc.
Donation matching, time off for volunteering, flexible working
arrangement, sports/social/ affinity groups, gratitude practice,
corporate social responsibility programs, etc.
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Making Holistic Wellbeing Plan
benefits that truly benefit
Covid19 Latest Update
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Covid-19 CrisisVietnam updates as of 17 Sep 2020
Protocols to enter Vietnam for non-Viet nationals
Travelers currently allowed to enter Vietnam, including diplomatic,
official duty, experts, business men, foreign investors, and high-tech
workers of businesses involved in important projects as determined
by the Government of Vietnam, and their family members, are
subjected to mandatory 14-days quarantine upon arrival
1. A Fit to Fly Health Certificate which has been certified or issued
no more than 72 hours before traveling;
2. Proof of health insurance with medical coverage
Upon entry into Vietnam, they must also undergo public health
screening measures, and may be required to get a rapid test if deemed
necessary, prior to being quarantined in an alternative state
quarantine facility for 14 days and being tested negative twice, for
which the traveler will be entirely responsible for the expense.
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Does your existing policy cover pandemic?
Not all insurers accept to cover for pandemic. At this moment, all medical expenses related to
Covid-19 will be paid by government but not for foreigners
My company’s coverage is a bit low. Any supplementary products for COVID-19?
No, following Decision from Prime Minister, no more Covid-10 standalone policy is allowed
to commercialize. You should consider high-end programs for better coverage for your
employee, especially expats & their family
Private hospitals now also treating COVID19 patients
There are private hospitals collaborated with the government to do testing only, all positive
cases have to centralized at public hospitals
Self-Isolation at Home? Telehealth guards you 24/7
- This pandemic could be ongoing for 12+ months. With situation developing rapidly in Asia, we
can’t be sure how long we can continue WFH.
- Either for stay at home for WFH or self-isolation, telehealth is useful.
- Insurer also will not cover for self-isolation cost and any state quarantine cost
- Telemedicine becomes one of insurer’s service features for the insured to get the treatment
“But will government pay all the
cost?”
“We implement WFH; our employees are safe. They are young, it is less likely they will be hospitalized”
“I do not know if my existing group
health insurance covers pandemic”
“I have group health
insurance policy in place”
Protective Equipment & Covid19 Test
- You will not pay for the cost of the tests if you follow instruction from CDC. Government
allows some hospitals to receive test but you will be charged Covid19 Test (Rapid & PCR)
- Insurer will not cover for Protective Equipment & Covid19 Test even you have a symptom
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Do my employees well protected by current Benefit Scheme?
Copyright @ 2020 MMB (Vietnam). All rights reserved.
We will:
• Understand your needs and
help you set priorities
• Share market trends
• Help you articulate your
program objectives so that
decisions have a firm basis
• Ensure smooth transition of
broking and vendor
arrangements
We will help you:
• Assistance in the development of
appropriate underwriting data and
specifications for renewal
negotiations
• Preparation of marketing
submissions to insurers
• Evaluating and reporting on the
financial stability of insurers
• Ensure that all renewals meet the
timeline required
• Advice and assistance in the
placement of the insurance program
We will work with you to:
• Invoicing and payment of
premiums and duties to insurers
• Day to day management of
insurance program issues
• Provision of insurance manuals
including claims procedures
• Address administrative support
needs and ensure a favorable
employee experience
• Day to day management and
recording of above deductible
claims
Based on your benefit program
and our analytics, we will:
• Provide recommendations
around the adequacy of your
program and cost drivers
• Use creative, data-driven
benchmarking and modeling
tools.
• Work with you to revisit your
plan design and financing
approaches to ensure
alignment with your objectives
• Disclose Broker remuneration
STRATEGY &
PLANNING
COST MANAGEMENT
& DESIGN
VENDOR SELECTION
MANAGEMENT
ADMINISTRATION &
COMMUNICATION
Mercer Marsh BenefitsWe are here to help you
benefits that truly benefit
Appendix
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Insured Benefits MarketHighlighted points on Regulatory Position
The main law governing private medical insurance is the Law on Insurance Business No 24/2000/QH-10 of 9 December 2000. Its
implementing regulations are contained in Decree No 73/2016/ND-CP.
Non-admitted life and health insurance is not permitted in Vietnam because the law provides that insurance must be purchased
from locally authorized insurers. It means that organizations and individuals wishing to purchase insurance shall choose insurance
enterprises" (insurers) but can only purchase insurance from insurance enterprises and foreign branches licensed to operate in
Vietnam.
There are no premium taxes applicable to life and health insurance in Vietnam
The Insurance Supervisory Authority Department (the regulator) of the Ministry of Finance (MOF) supervises the insurance market
including insurance and reinsurance companies, agents and brokers.
All Life & Health Insurance Products must be approved and registered by Ministry of Finance to be commercialized
The Ministry of Health (MOH) provides general supervision of the state and private healthcare system.
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Copyright @ 2020 MMB (Vietnam). All rights reserved.
Insured Benefits MarketHighlighted points on Regulatory Position (Con’t)
From 1 January 2018 expatriate employees working in Vietnam (including employees working in Vietnam under work permits,
practicing licenses, or certificates issued by competent Vietnamese authorities) may pay social security contributions under Law No
58/2014/QH13.
Labor code No 10/2012/QH13 dated 18 June 2012 on labor accident and employers’ responsibilities for labor accidents and
occupational diseases of employees.
An employee who has a labor accident or suffers an occupational disease not due to his/her fault and loses 5% or more of
his/her working ability is entitled to compensation by his/her employer as follows:
o At least equal to one and half month’s wage stipulated in the labor contract in case of losing between 5% and 10%
of the working ability, then an additional 0.4 month’s wage stipulated in the labor contract for every increase of 1%
in case of losing between 11% and 80% of the working ability;
o At least equal to 30 months’ wage stipulated in the labor contract in case of losing 81% or more of the working
ability, or to family members of the employee who dies from a labor accident.
In case the employee is at fault, he/she is still entitled to an allowance at least equal to 40%
Law No 58/2015/QH13 on occupational accidents and disease, effective from 1 July 2016 represents a consolidation of previous
laws and regulations relative to occupational safety and hygiene. It applies to individuals not working under a labor contract as well
as to employees. It clarified and broadened the definitions of labor accidents to include:
accidents occurring during breaks and rest time at work
accidents occurring outside the workplace or outside working hours when on assignment by the employer
accidents occurring when travelling between the employee's residence and the workplace within a reasonable space of time
and on a reasonable route.
Copyright @ 2020 MMB (Vietnam). All rights reserved.