Housing Price Decline Affects Insurance Premiums
Average -3.9% Impact on Regional Subscribers
From November this year, the health insurance premiums for self-employed individuals are expected to slightly decrease compared to last year. Regional subscriber premiums vary not only based on income but also on property, due to the decline in housing prices caused by the real estate market downturn.
According to tax startup 'Atiwells' on the 2nd, this year's regional subscriber health insurance premiums are expected to be 3.9% lower than the previous year.
Typically, health insurance is divided into workplace subscribers and regional subscribers. The former includes employees and employers of all businesses such as companies, as well as public officials and teachers.
Residents of rural fishing villages and urban self-employed individuals, excluding workplace subscribers and their dependents, are classified as regional subscribers.
Workplace subscribers' health insurance premiums are calculated based on income. However, regional subscribers' premiums reflect not only income but also owned property and automobiles. Regarding property, taxable assets include houses, buildings, land, leased houses, deposits, and monthly rent amounts subject to property tax.
However, due to the decline in housing prices last year and the downward adjustment of the actualization ratio applied when calculating official prices, the official prices of apartment complexes nationwide fell by 18.6% this year.
Accordingly, according to the Ministry of Health and Welfare and the National Health Insurance Service, the average monthly regional health insurance premium decreased by 3,839 KRW compared to a year ago. This represents a 3.9% reduction in the average payment amount for all regional subscribers compared to the previous year.
Looking into how much regional health insurance premiums will decrease
According to tax and pension tax-saving solution Selimon, assuming a single household owning only a house without income or automobiles, a regional subscriber owning an Eunma Apartment in Gangnam-gu, Seoul, will see their regional health insurance premium including long-term care insurance decrease from 257,630 KRW per month to 229,430 KRW per month. This results in an annual premium reduction of 338,400 KRW.
For a regional subscriber owning a Dogok Rexle Apartment in Gangnam-gu, Seoul, the health insurance premium is expected to decrease from 267,040 KRW per month to 248,230 KRW per month, resulting in an annual premium reduction of 225,720 KRW.
An owner of a Helio City Apartment in Songpa-gu, Seoul, will see their premium decrease from 238,820 KRW per month to 220,200 KRW per month, saving a total of 237,000 KRW annually.
Since regional health insurance premiums vary depending on the fluctuation of official prices, individual differences are expected to be significant. Additionally, premiums are also charged on income and automobiles besides property, so the extent of health insurance premium reductions may vary accordingly.
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