NHIS Reduces Administrative and Economic Costs
by Linking Data with the National Tax Service
The requirement for submitting a certificate of contract termination, which was necessary for freelance business income earners such as insurance planners and delivery riders with irregular income to receive reductions on their health insurance premiums, will be abolished.
The National Health Insurance Service announced on September 16 that, following the revision of the Enforcement Decree of the National Health Insurance Act, it will now be possible to adjust and settle health insurance premiums without submitting separate documents such as a certificate of contract termination, by linking and utilizing real-time income data from the National Tax Service.
Real-time income data refers to the simplified payment statement data collected monthly by the National Tax Service to support the expansion of employment insurance for vulnerable groups and to address gaps in the social safety net. This includes daily workers, insurance planners, delivery riders, substitute drivers, other personal service providers who earn additional income from lectures or consulting, as well as service providers such as caddies, caregivers, and sports instructors.
Previously, these freelance business income earners were required to submit separate documents, such as a certificate of contract termination, to the National Health Insurance Service to prove a reduction or cessation of income when applying for adjustments or settlements of their health insurance premiums. Many experienced inconvenience during this process, as it was often difficult to obtain such documents due to issues like the closure or suspension of the income-paying entity or complications in relationships with former employers.
The National Health Insurance Service has improved the system so that income adjustments can be made without submitting additional supporting documents, by directly linking and utilizing real-time income data from the National Tax Service. As a result, if there is a record of simplified payment statement reports for business income with the National Tax Service, the National Health Insurance Service will use this data to replace the procedure of submitting a certificate of contract termination, allowing for income adjustment and settlement applications without requiring supporting documents.
Park Sunghui, Director of the Qualification Assessment Department at the National Health Insurance Service, stated, "We will continue to expand and develop services that reduce inconvenience and improve convenience for the public. Through these efforts, we aim not only to reduce administrative and economic costs but also to contribute to environmental, social, and transparent (ESG) management by decreasing the use of paper documents."
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