November Health Insurance Premium Reflects New Income and Property Data
34% of Subscribers See Increase of 42,616 KRW Compared to Previous Month
Despite Real Estate Price Decline, Only Last Year's Increase Applied
Premium Adjustment Application Possible for Business Suspension, Closure, or Contract Termination
[Asia Economy reporters Jo In-kyung and Byun Seon-jin] Mr. A (in his 50s), who runs a meat restaurant in Seoul, was surprised when he received his health insurance premium bill last week. This month’s health insurance premium was 350,000 won, nearly 30% higher than October’s 270,000 won. The bill showed that his income score and property score had each increased by nearly 300 points and 100 points compared to the previous month. Mr. A said, "It’s true that the store’s sales have increased compared to last year, but the costs of ingredients and labor have also risen significantly, and the house I live in dropped in value by 100 million won in just a few months, yet the health insurance premium went up by 80,000 won all at once. It seems only self-employed people with fluctuating incomes are at a disadvantage," he lamented.
As about 3 out of 10 regional health insurance subscribers have to pay an average of more than 40,000 won extra from this month, complaints are pouring in from various places. This is because the criteria for dependents have been raised, causing some subscribers who previously did not pay premiums as dependents to be converted to regional subscribers, and because last year’s sharp rise in real estate prices has also led to increased health insurance premiums.
According to the National Health Insurance Service on the 28th, among 8.25 million regional health insurance households, premiums for 2.82 million households (34.2%) increased by an average of 42,616 won (38.4%) from this month. Premiums for 1.98 million households (24.0%) decreased by an average of 28,073 won compared to the previous month, and 3.45 million households (41.8%) saw no change. Looking at all households, the average increase was 7,835 won, about 9.66%, but for those whose premiums rose, the increase was more than three times higher.
Unlike workplace subscribers whose premiums are calculated based only on income indicators, regional subscribers such as freelancers and self-employed individuals have their premiums calculated based on three indicators: income, property, and car value. Every November, premiums are adjusted to reflect the previous year’s income data received from the National Tax Service and property values as of June 1 collected by local governments.
This year, even though income has not changed much, many cases saw a sharp rise in November premiums due to last year’s rapid increase in housing prices. However, as the real estate market has sharply cooled in the second half of this year, actual property values are often declining, leading to growing dissatisfaction among subscribers.
On online communities, complaints have appeared such as, "I registered my business two years ago, but the COVID-19 outbreak meant almost no income, yet this time (last year’s) income was recorded and my health insurance premium more than doubled," "My income stayed the same, but my apartment’s market price rose, so my premium increased by nearly 100,000 won," "My income dropped sharply, but my premium rose 3 to 4 times; after checking, I found that business closure was not reflected, so I even went to the NHIS to resolve it," and "I have to call every place I worked even once to get termination certificates?what a waste of time."
Since September, the eligibility for dependents has been tightened from an annual income of 34 million won or less to 20 million won or less, increasing the number of newly included regional subscribers. Previously, housewives, part-time workers, and retirees who did not pay premiums now have to bear separate health insurance premiums.
Mr. B, a regional subscriber living in Incheon, said, "Until August, I paid about 130,000 won monthly, but in September and October it dropped to 60,000 won, then in November it jumped to 200,000 won, more than three times. The premium was halved for two months, but then increased much more than the amount reduced, so it feels like I’m being given and taken away," he complained. In response, the National Health Insurance Service explained, "Although premiums increased compared to October, due to the second phase reform of the September premium system, the average November premium (88,906 won) is 15.4% lower than last year’s, marking the lowest amount in the past four years."
If a regional subscriber’s income has decreased due to business suspension or closure but premiums have increased, they can submit required documents such as an income adjustment consent form, business closure certificate, and retirement (termination) certificate to the NHIS for adjustment. The adjusted premium will be recalculated in the November premium of the following year. Adjustments can also be requested with supporting documents such as a certified copy of the register if property has been sold, not just income changes.
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