Understanding How Your Health Insurance Premium is Charged in Korea
In Korea, the National Health Insurance (NHI) premiums are calculated based on your income, assets, and specific employment status. Here's an overview of how health insurance premiums are typically charged:
1. Types of Insured Individuals
Employed Insured (직장가입자): Employees working for a company or organization.
Self-Employed Insured (지역가입자): Individuals who are not employed by a company and include freelancers, business owners, or those with variable income.
2. Calculation for Employed Insured
Premium Composition: For employees, the health insurance premium is calculated as a percentage of their salary. The employer and the employee share the premium cost.
Contribution Rate: The premium rate is revised annually by the NHIS. For example, if the rate is 7.09%, an employee earning KRW 5,000,000 per month would have a premium calculated as follows:
Total Premium = Salary × Contribution Rate = 5,000,000 × 7.09% = KRW 354,500.
Employee Share: Half of the premium (e.g., KRW 177,250) is paid by the employee.
Employer Share: The other half (e.g., KRW 177,250) is paid by the employer.
3. Calculation for Self-Employed Insured
Income-Based Assessment: The premium for self-employed individuals is based on their reported income and assets. The NHIS uses a complex formula that considers:
Reported Income: Such as business income, rental income, dividends, etc.
Assets: Property, vehicles, and other significant holdings.
Age and Household Structure: Adjustments are made based on household members and dependents.
Points System: Each type of income and asset is assigned a point value, which is then multiplied by a standard contribution rate to determine the total premium.
4. Additional Considerations
Dependent Coverage: Family members without a separate income may be covered as dependents under an employed individual's insurance.
Adjustments and Surcharges: If your income changes significantly, or if the NHIS audits and finds discrepancies in reported income/assets, adjustments or surcharges may apply.
Health Insurance Subsidies: Low-income earners may qualify for subsidies to reduce their premiums.
Example Calculation for Self-Employed:
If you are a business owner and report an annual income of KRW 50,000,000 with additional assets (such as property worth KRW 200,000,000), the NHIS will:
Assign points to your income and assets.
Multiply the points by the rate to determine the monthly premium.
How to Check Your Specific Premium
You can check your health insurance premium through the NHIS online portal (as provided in the link you shared) by logging in with your ID and verifying your details. The site will show your current premium breakdown, adjustments, and payment history.
If you'd like more specific guidance on navigating the NHIS site or understanding the exact calculation details for your case, Please dial 033-811-2000 (Overseas: 82-33-811-2001)
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