Health insurance contribution to be reduced for 65% of self-employed insured persons: DONG-A ILBO
Health insurance costs for 5.61 million households, among the self-employed insured with national health insurance, will be reduced by an average of 36,000 won per month starting in September. On the other hand, 273,000 members, including the elderly, who have registered as beneficiaries of the insured employee and have therefore not contributed to health insurance will have to start paying the health insurance contribution from September.
The Ministry of Health and Welfare announced on Wednesday that it would publish a notice of legislation on Thursday on the proposed amendment to the implementing decree and implementing rules of the National Health Insurance Act. The essence of the amendment to the health insurance scheme is to reduce the amount of health insurance contributions that the self-employed person has to pay. It has been criticized that self-employed policyholders have to pay a higher amount of health insurance costs than salaried policyholders, because their health insurance costs have been taxed in proportion not only to their income but also to their homes and vehicles.
Starting in September, the government will not collect insurance fees on property such as houses or land valued at a market value of less than 120 million won (83.33 million won in publicly announced value). The car insurance tax will also only be imposed on those worth more than 40 million won. The ministry expects this renewed scheme to benefit 65% of the self-employed insured.
In the meantime, the number of people who are currently registered as dependents of the insured employee, even though they could pay health insurance contributions, will be reduced. So far, only those whose annual income exceeds 34 million won have lost dependent eligibility. However, from September, the dependent eligibility condition will be an annual income of more than 20 million won. In addition, the insured employee with an annual financial income of more than 20 million won, for example, bank interest or stock dividends, will be subject to additional health insurance fee collection. Approximately 2 percent of all employees will be subject to the obligation to pay additional health insurance costs.