Healthcare Financing
67. Our healthcare services are heavily subsidised. The Government bears over 95 per cent of their cost. Rapid advances in medical science and pharmaceutical technology mean more expensive treatments and drugs and lead to even higher expenditure. According to the Hong Kong Population Projections, the proportion of residents aged 65 and over will rise from 12 per cent in 2003 to 27 per cent in 2033. All these factors will bring greater pressure to bear on government finances. The Health, Welfare and Food Bureau is consequently studying alternative arrangements for healthcare financing, and will conduct a public consultation later in the year. In finalising an overall package, we will consider whether to provide a tax deduction for contributions to private medical insurance schemes, a suggestion put to me by many during my own consultations on the Budget.
