Korea: Temporary reduction of contribution rates to health insurance

Submitted by mmarquez on Thu, 09/17/2020 - 15:36

koreaherald.com (11.03.2020) The National Health Insurance Service said the lower 20 percent of the income bracket will receive about 30 to 50 percent reduction in premiums from March through May. For the worst-affected Daegu and North Gyeongsang Province’s Gyeongsan, Cheongdo and Bonghwa, the bottom half of income earners will be given the partial premium waivers. The lowered payments are a part of Korea’s disaster relief subsidy plan announced March 30 to cushion financial blow from the outbreak for the financially vulnerable. Under the emergency plan, 1.16 million people are expected to get an average of about 91,559-won reduction in their premiums over the three-month span, officials said.

measures summary

HIS is offering a 50% reduction temporary reduciton (2 months from March to May 2020) in health insurance contributions for the bottom 50% insurance payment profile based on the amount of contribution paid in the special disaster areas (e.g., Daegu, etc.) or for the bottom 20% insurance payment profile based on the amount of health insurance contributions paid in other regions for three months. I nsured people who belong to the bottom 20~40% bracket of insurance contributions will receive a 30% reduction of contribution payment for three months. A total of 11.6 million people will receive a reduction of about 7 hundred million USD for three months.

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