Late Fees for Unpaid Health Insurance Reduced to a Maximum of 5%

[Asia Economy Reporter Choi Dae-yeol] The National Health Insurance Service announced on the 15th that the maximum late payment penalty for unpaid health insurance premiums will be reduced from 9% to 5%.

Previously, after the initial payment period for the premium passed, a late fee of up to 3% was charged for up to 30 days, and up to 9% was charged on a pro-rata basis from the 31st day up to 210 days. To alleviate the financial burden on defaulters, the law has been amended so that from now on, a maximum of 2% will be added for up to 30 days, and up to 5% for the period from the 31st day to 210 days.

Health insurance includes health insurance premiums, long-term care insurance premiums, and recovery fees for medical expenses after default. The recovery fee for medical expenses after default is a collection fee where the National Health Insurance Service recovers medical expenses it covered during hospital or clinic treatment when the insured has defaulted on premiums six times or more. For the National Pension, the reduced late payment penalties will be applied to pension insurance premiums according to the amended law.

The changes will apply to the January premiums of this year, whose first payment deadline falls after the 16th. Premiums that were notified before the law amendment and remain unpaid will incur the existing maximum late fee of 9%. Legislative procedures to reduce late fees for employment insurance and industrial accident insurance premiums to the same level are currently underway.

This content was produced with the assistance of AI translation services.