From November, Average Health Insurance Premium for Regional Subscribers Decreases by 4.1%... Lowest in the Past 5 Years

NHIS Applies New Income and Property Data
Average Insurance Premium for 8.69 Million Households Decreases by 87,299 KRW

From next month, the average health insurance premium for regional subscribers will decrease by 4.1%. This is the lowest level in the past five years.

The National Health Insurance Service (NHIS) announced on the 25th that it will calculate health insurance premiums for regional subscriber households by reflecting new assessment data such as income for the 2023 tax year and property tax base for 2024, starting from the November premiums, and apply them for one year until October next year.

Regarding income, the National Tax Service notifies the NHIS in October of the 2023 tax year income amounts reported by business operators by the end of June, which will be applied from the November premiums. For property, local governments notify the NHIS in October of the property tax base amounts confirmed as of June 1, which will be reflected starting this month.

As a result, the average health insurance premium in November is 87,299 KRW, the lowest amount in the past five years, down 4.1% (3,713 KRW) compared to the previous year.

It is believed that the average premium decreased due to the expansion of the basic property deduction (from 50 million KRW to 100 million KRW) and the abolition of automobile insurance premiums implemented in February this year as part of the 'income-centered assessment system reform,' which reduced property insurance premiums by 26,066 KRW for 3.4 million households.

However, due to an increase in financial income, the income insurance premiums for a total of 8.96 million households increased by 6,308 KRW, and among them, 710,000 households saw their premiums increase by 7,698 KRW due to a reduction in the minimum premium increase discount rate and a decrease in the regional premium discount rate following the loss of dependent status.

The NHIS informed that those who have stopped income activities due to business suspension or closure, or whose income has decreased, can submit supporting documents to apply for adjustment and settlement of business and earned income.

Also, in November, for those who received adjustments for premiums from January to December 2023, the NHIS will verify the 2023 tax year income data, recalculate the premiums, and either charge additional amounts or provide refunds for the difference.

Furthermore, from January 1, 2025, according to the amendment of Article 41-2 of the Enforcement Decree of the National Health Insurance Act, the types and reasons for income eligible for adjustment and settlement applications will be expanded. If property is sold, submitting proof documents and applying for a premium change at the nearest NHIS branch office will allow for premium adjustments.

An NHIS official stated, "November premiums must be paid by the 10th of next month," and added, "We will continue to promote the reform of the income-centered assessment system to enhance fairness and equity in premium burdens."