Increase in Health Insurance Premiums for Workplace Subscribers Can Now Be Paid in Up to 10 Installments

[Asia Economy Reporter Lee Chun-hee] Payment of increased health insurance premiums for National Health Insurance workplace subscribers can now be divided into up to 10 installments if economic burdens increase due to COVID-19 or other factors.

The Ministry of Health and Welfare announced on the 6th that the partial amendment to the Enforcement Decree of the National Health Insurance Act, which includes this content, was approved at the Cabinet meeting that morning.

This amendment expands the reasons for installment payments of year-end tax adjustments for workplace subscribers, stipulates the upper limit of contributions by the National Health Insurance Corporation for catastrophic medical expense support by presidential decree under the delegation of the National Health Insurance Act, and establishes criteria for exemption from health insurance premiums for overseas workers, thereby improving and supplementing the National Health Insurance system.

Accordingly, the installment payment system for year-end tax adjustments for workplace subscribers will increase the maximum number of installments to 10. The National Health Insurance Corporation currently settles premiums based on the previous year's income every April, refunding or collecting additional amounts. If the additional collection amount exceeds the April premium amount, it is paid in 5 installments.

However, going forward, if there is concern about increased economic burden due to infectious disease crises such as COVID-19, the additional collection amount can be paid in installments up to 10 times.

Additionally, the amendment sets the upper limit of the amount the Corporation can contribute annually to the catastrophic medical expense support project at one-thousandth of the insurance premium revenue from two years prior, ensuring stable promotion of the support project. Accordingly, considering the 2020 insurance premium revenue of 62.4849 trillion KRW, the contribution ceiling for next year is set at 62.5 billion KRW.

Furthermore, for overseas workers related to economic activities currently exempt from premiums if staying abroad for more than 3 months, those recognized as departing early due to adverse weather while working on distant-water fishing vessels or other ocean-going ships will be exempt from premiums even if staying abroad for only one month.

Choi Jong-gyun, Director of the Insurance Policy Bureau at the Ministry of Health and Welfare, said, "Through this amendment to the enforcement decree, the burden of year-end tax adjustment premiums can be distributed during crises such as infectious diseases, and a legal basis has been established for the stable promotion of catastrophic medical expense support. Meanwhile, it is expected to contribute to the improvement of the National Health Insurance system by reducing the health insurance premium burden for overseas workers engaged in economic activities."

The amended enforcement decree will take effect from the date of promulgation, June 14.

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