Reasons for reduction in national health insurance premiums and the rate of reduction
Reduction for islands and remote areas- Any insured who resides on an island or in a remote area referred to in attached Table 1 of the “Notice on the Reduction of Insurance Premiums” as an area that is distant from a health care institution or an area where traveling takes a long time by public transportation will be entitled to 1/2 reduction of the insurance premium for the household or the insured [Article 75 (1) 1 of the “National Health Insurance Act”, Article 45, subparagraph 1 of the “Enforcement Decree of the National Health Insurance Act”, Article 46, subparagraph 1 of the “Enforcement Rule of the National Health Insurance Act”, and Article 3 (1) of the “Notice on the Reduction of Insurance Premiums”].
Reduction for rural areas- The servitude residing in the following rural areas will be entitled to a reduction of 22/100 of insurance premium for each household (Article 75 (1) 1 of the “National Health Insurance Act”, Article 45, subparagraph 2 of the “Enforcement Decree of the National Health Insurance Act”, Article 46, subparagraph 2 of the “Enforcement Rule of the National Health Insurance Act”, and Article 4 of the “Notice on the Reduction of Insurance Premiums”):
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Rural area |
Self-employed insured |
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▪ Eup/Myeon area of a Gun or of a Si that takes the combined urban-rural form |
▪ Farmers and fishermen referred to as in the “Framework Act on Agriculture and Fishery Villages and Food Industry” ▪ Fishermen under the “Fisheries Act” ▪ Persons engaged in mining under the “Mining Act” ▪ Persons with annual business income of 5 million won or less under the Income Tax Act |
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▪ Dong area of a Si or of a Gun referred to in the “Local Autonomy Act”, excluding residential areas, commercial areas, and industrial areas designated under the “National Land Planning and Utilization Act” ▪ Area that falls under the “Special Act on Improvement of Public Health and Welfare for Agricultural and Fishing Village Residents” and Article 33 of the same Act |
▪ Farmers and fishermen referred to as in the “Framework Act on Agriculture and Fishery Villages and Food Industry” ▪ Fishermen under the “Fisheries Act” ▪ Persons engaged in mining under the “Mining Act” |
Reduction for households- If the composition of the household with a self-employed insured satisfies any of the following, the insurance premium for the applicable household may be reduced according to the reduction standards for insurance premiums under attached Table 2 of the “Notice on the Reduction of Insurance Premiums” (Article 75 (1) 2, 3, 4, and 6 of the “National Health Insurance Act”, Article 46, subparagraphs 4 and 6 of the “Enforcement Rule of the National Health Insurance Act”, and Article 6 (1) of the “Notice on the Reduction of Insurance Premiums”):
· A household with senior citizens aged 65 or older among its members
· A household comprised of only senior citizens over 70 years old (including a household with a spouse under 70 years of age in the case of a married couple)
· A single-parent household (including a household with children raised by their grandparent) with lineal descendants who are all aged less than 21 years old or even if anyone of them is aged 21 years or older, he/she is serving in the military (excluding a person servicing as full-time reserve personnel or social service personnel) or he/she is a student (including graduate students, those who retake the college entrance exam, and vocational training students)
· A single-person household with a woman over 55 years of age
· A household entirely comprised of minors aged less than 21 years old or even if any of them is aged 21 years or older, he/she is serving in the military (excluding a person servicing as full-time reserve personnel or social service personnel) or he/she is a student (including graduate students, those who retake the college entrance exam, and vocational training students)
· A household with a registered disabled person under the “Welfare Act for Persons with Disabilities”
· A household with business income which finds it extremely difficult to make a living as its current business establishment is severely disrupted by fire, bankruptcy, auction, etc.
· A household which finds it extremely difficult to make a living because an insured who is responsible to support the family is detained for a long period of time (or has gone missing) or he/she suffers from a chronic disease, etc.
Reduction for disasters- The insurance premium will be reduced for the household with a self-employed insured falling under any of the following categories as a self-employed insured who resides in an area declared by the President as a special area of disaster under Article 60 of the “Framework Act on the Management of Disasters and Safety”, according to the standards determined under attached Table 3 of the “Notice on the Reduction of Insurance Premiums” (Article 7 (1) of the “Notice on the Reduction of Insurance Premiums”):
· A self-employed insured eligible to receive disaster subsidies in accordance with Article 9 of the “Regulations on Standards of Expenses for Relief and Recovery from Natural Disasters”
· A self-employed insured eligible to receive subsidies for livelihood stability in accordance with Article 3 (1) 1 of the “Regulations on Standards of Expenses for Relief and Recovery from Social Disasters”
· A self-employed insured who is a small business owner in accordance with Article 2 of the “Framework Act on Micro Enterprises”
- The reduction for disasters is implemented for the insurance premium for three months from the month immediately following that in which the disaster occurred (if the date of the disaster is the 1st day of each month, it will be the same month). However, if personal damage (refers to death, disappearance, or injury) and physical damage occur at the same time, the insurance premiums for six months will be reduced (Article 7 (2) of the “Notice on the Reduction of Insurance Premiums”).
Reduction in the insurance premium for those who transfer the premium online- If those obligated to pay insurance premiums receive the notice of payment with electronic documents or pay their insurance premiums by means of direct debit or credit card payment may benefit from reduced premiums to the extent of administrative costs saved such as postage or may be provided with money or other valuables equivalent to the amount reduced (Article 75 (2) of the “National Health Insurance Act” and Article 45-2 of the “Enforcement Decree of the National Health Insurance Act”).
Reduction in the insurance premium for overseas Korean nationals and foreign nationals- The NHIS reduces the insurance premiums of the self-employed insured who are overseas Korean nationals and foreign nationals [excluding the self-employed insured whose status of stay is permanent resident (F-5) or marriage with Korean citizen (F-6), and the same will apply hereinafter] based on the status of stay of the head of the relevant household under the following classification (Article 109 (9) of the “National Health Insurance Act”, Article 76-4 of the “Enforcement Decree of the National Health Insurance Act”, Article 6 (1) attached Table 2, subparagraph 5 main text in the part other than each item and each item of the “Application Standards for Overseas Korean Nationals and Foreign Nationals who Stay in Korea for a Long Period of Time”:
· If the status of stay is for religion (D-6): 30/100
· A person whose status of stay falls under the category of miscellaneous (G-1) as a person who has obtained the permission to stay for humanitarian reasons and who has been determined by the NHIS: 30/100
· If the status of stay falls under the categories of students (D-2) or general trainee (D-4): Ratio according to the following classification
√ Monthly premium from March 2021 to February 2022: 70/100
√ Monthly premium from March 2022 to February 2023: 60/100
√ Monthly premium from March 2023 onwards: 50/100
· If an overseas Korean national or a person whose status of stay falls under the category of overseas Korean (F-4) studies at a school referred to in Article 2 of the “Elementary and Secondary Education Act” or a school (excluding a graduate school or a graduate school university or college) referred to in Article 2, subparagraphs 1, 2, 3, 4, or 6 of the “Higher Education Act”
√ Monthly premium from March 2021 to February 2022: 70/100
√ Monthly premium from March 2022 to February 2023: 60/100
√ Monthly premium from March 2023 onwards: 50/100
※ For a self-employed insured who is an overseas Korean national or foreign national to benefit from reduced insurance premiums, his/her income must not exceed 3.6 million won under attached Table 2 of the “Notice on the Reduction of Insurance Premiums” and his/her standard property must not exceed 135 million won (Article 6 (1) and proviso to the part other than each item in attached Table 2, subparagraph 5 of the “Application Standards for Overseas Korean Nationals and Foreign Nationals who Stay in Korea for a Long Period of Time”).