Regional Subscribers' Health Insurance Premiums Increase by 8,245 Won This Month... 2.58 Million Households Affected

▲National Health Insurance Service

[Asia Economy Reporter Seo So-jung] The average monthly insurance premium per household for regional health insurance subscribers, including self-employed individuals, will increase by an average of 8,245 KRW per household this month compared to the previous month due to rises in taxable income and property tax base.

The National Health Insurance Service (NHIS, President Kim Yong-ik) announced on the 23rd that it will apply the changes from the 2019 income data (from the National Tax Service) and the 2020 property tax base data (from local governments) to regional subscribers' insurance premiums starting with the November premiums.

The insurance premiums for regional subscribers are assessed annually from November by reflecting newly obtained changes in income under the Income Tax Act and property tax base under the Local Tax Act, applying these changes to the premiums for one year.

Starting this year, health insurance premiums will also be levied on separately taxed financial income (interest and dividend income totaling more than 10 million KRW and up to 20 million KRW annually) and separately taxed housing rental income (total rental income up to 20 million KRW annually).

According to the NHIS, among the total 7.71 million regional subscriber households, 2.58 million households (33.5%) with increased income and property tax base compared to the previous year will see their premiums rise.

Premiums will remain unchanged for 3.67 million households (47.6%) with no change in income or property tax base, while premiums will decrease for 1.46 million households (18.9%) whose income or property tax base declined.

Reflecting the 11.04% increase in 2019 income and the 6.57% increase in 2020 property values, the average insurance premium for regional subscribers this month rises by 8,245 KRW (9.0%) per household compared to the previous month.

This year, premiums were also levied on separately taxed housing rental income and financial income, which had not been previously assessed.

The NHIS stated, "As separately taxed housing rental income, which was temporarily exempted under the Income Tax Act from 2014 to 2018, has now become taxable, health insurance premiums were imposed on approximately 28,000 households," adding, "4,700 households received premium reductions on the increased amounts, so the burden increase is not significant."

They further explained, "Although health insurance premiums are to be levied regardless of whether income is comprehensively or separately taxed, premiums had not been imposed due to difficulties in data linkage. However, after revising the Enforcement Decree of the National Health Insurance Act, premiums were imposed on 76,000 households with separately taxed financial income exceeding 10 million KRW and up to 20 million KRW."

November premiums must be paid by December 10. If income has decreased due to business suspension or closure, or if property has been sold, preparing related documents such as retirement or termination certificates, income certificates, and property registration copies and applying for adjustment at the nearest NHIS branch (☎ 1577-1000) can result in premium adjustments.

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