Economic Sector

Last updated: Thursday, February 21, 2019


Health Insurance Premiums and Interests Revised from July 1

Posted: Thursday, July 05, 2018

The base salary hike from VND1.3 million to VND1.39 million from July 1, 2018 will raise the rate of health insurance premiums and interests of millions of insured people.

Health insurance premiums increase for many

According to Decree105/2014/ND-CP on instructions to the enforcement of the revised Health Insurance Law 2014, monthly health insuraance premiums paid by part-time public workers in communes, wards and townships; beneficiaries of monthly social insurance allowances; children under 6 years old; people with meritorious services to the revolution; and people living near the poverty line will be 4.5 per cent of base salary.

Thus, the health insurance premium of the abovementioned grows to VND62,550 per month from of VND58,500 earlier.

In addition, the Decree 105/2014/ND-CP stipulates that the monthly health insurance premium of a household will be defined as follows: The first person will pay an amount equal to 4.5 per cent of base salary; the second, third and fourth persons pay 70 per cent, 60 per cent and 50 per cent of the first person’s value; and the fifth person onwards the pay 40 per cent.

When the base salary rises to VND1.39 million a month, the insurance premium of the first, second, third and fourth persons in a household will be respectively VND62,550, VND43,750, VND37,530 and VND31,275. The fifth person onward will pay VND25,020 a month each.

Higher health insurance benefits of insured persons

According to Decree 105/2014/ND-CP, health insurance premiums paid for full five consecutive years and insurance coverage paid for medical treatment in the year more than six months' base salary, 100 per cent of medical expenses are covered by insurance. Therefore, from July 1, the insurance coverage for medical treatment will rise from VND7.8 million to VND8.34 million

In addition, the decree stipulates that the cost of medical treatment is lower than 15 per cent of the base salary, 100 per cent of medical expenses will be paid by insurance. Accordingly, from July 1, if the cost of medical treatment/examination is lower than VND208,500, it will be fully covered by insurance.

According to Circular 04/2017/TT-BYT of the Ministry of Health, in case medical supplies are not included in the price of technical services, medical examination, hospitalised days or full-package collection for specific cases, the health insurance fund will pay the total cost for a one-time use of technical services not exceeding 45 months of base salary. Thus, from July 1, the health insurance coverage for this case is VND62.55 million instead of VND58.5 million as before.

According to the Vietnam Social Security, currently, 80.81 million people are holding health insurance policies, or 86.1 per cent of the population, 4 per cent higher than the target set by the Government and approaching the target of 90 per cent of the population by 2020. In the first quarter of 2018, the health insurance fund paid for nearly 40.2 million medical visits.

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