Health Insurance

National Health Insurance

What is the National Health Insurance?

To enhance the public health and strengthen social security, the National Health Insurance Corporation (NHIC) is providing health care benefits against illness and injuries for the insured persons. The insured persons under the NHI program are classified into two categories: the employed insured (including the public officers) and the self-employed insured (including farmers, fishermen and the self-employed in urban areas)

Conditions for enrollment

The employed insured

Those who have registered as foreigners at the Immigration Office and are the employers or the employees of workplaces in Korea are covered as the employee insured.

-       The coverage for foreigners who work at the workplaces under the NHI has been compulsory since the first of January in 2006.

-       For the following, regarding company employees, they can be excluded from application as of July 31, 2007

• For foreigners receiving medical benefits under foreign law and insurance.
• For those receiving medical benefits under contract with employer.

※           But for holders of E-9 and H-2 residing certification visas, the benefits are provided unconditionally.

- For the French Health insurance company plan subscribers, tentative application is possible (From June 1, 2007)

 

The self-employed insured

The self-employed insured: Foreigners who have the following status of sojourn and are exclude from the category of the employee insured can be the self-employed insured on the voluntary basis.

- The status of sojourn: F-1~5, D-1~9, E-1~10, H-2, Korean nationals residing foreign countries. However, the coverage of those who have the status of stay E-6 and E-10 are effective from the first of January, 2008

 

Enrollment procedures and documentations required

The employed insured

Foreign workers shall make an application for enrollment to the employer of their workplaces who is by law responsible for submitting the application to the NHIC with relevant documents including a certificate of foreign registration.

The self-employed insured

For the self-employed coverage, foreigners shall make an application for enrollment at any nearest NHIC branch office in their residential area with a certificate of foreign registration.

 

Imposition of contributions and payment

The employed insured

• Monthly Contribution = Monthly wage×Contribution Rate (50% of which are paid by the employer)
• The obligation of contribution payment is retroactive up to the date the enrollee was employed and the contribution shall be deducted from the monthly salary.

The self-employed insured

• For those who have identified income, 「Monthly Contribution = Monthly Wagebution = Monthly W」
• ※ If Monthly Contribution of household is below the average Contribution, NHI imposes the average Contribution on the household.
• In case of unavailability of income information, the average Contribution for the region based on the end of the previous year should be applied.

For residential qualification, holders of religion (D6) with residing certification visas receives a reduction of 30%, holders of overseas education visa (D2) and Korean nationals who usually reside abroad receiving education in Korea are given the reduction of 50%.

• However, the foreigners who have a residence status of F1~F2 or F5 shall pay the contribution amount calculated by the same imposition standard of Korean nationals on a monthly basis
• The obligation of contribution payment is retroactive to the data the application was registered as an alien in Korean and the contributions shall be paid in advance every month.
• ※     For foreigners who is self-employed insured: Contribution bill notice available in English, Japanese and Chinese.

 

Contribution for Long-term Care Insurance

• 「Health Contributionng-term Care Insuranceed: Contribution bill notice 」
• Insurance Benefits
• The insurance benefits for foreigners are all the same as those for the Korean nationals.
• A patient is required to pay 20% of the total medical charges for inpatient care and 30~50% for outpatient services depending on the level of health care facilities or the total amount of service charges. In addition, the NHIC is providing cash benefits including childbirth expenses and is carrying out various customer support programs such as health education, temperance movement, etc. in an effort to improve the health of the population and prevent illness.

Benefit of Health Examination

Category	Examination Subject	Examination Period	Examination Contents	Charge of Expense
Infant Health Examination	Infant under 6years old	4, 9, 18, 30 month old, and 5years old.Total 5times	Physical measurement, Examination, Development assortment evaluation	No Expense on the examinee
General Health Examination	The employed insured, The self-employed insured, (Household) over 40 years old, Company Supporter	White collar: Every other yearNon-white Collar: Yearly	Primary: 23 items including examination, consultationSecondary: 28 items of 8 diseases	No expense on the examinee
Cancer Examination	Among the subject of general health examination, depending on the	White Collar: Every other yearNon-white Collar: Yearly	Stomach cancer, Large Intestine cancer, Breast cancer, Uterus Cervical cancer etc. step by step examination depending on the types of cancer	Top 50% of Contribution → 20% charge on the examineeBottom 580% of Contribution → No expense on the examinee
Lifetime Transition Period Health Examination	Person at the age of 40, and 66	Once a person reaches the age of 40 and 66	40years old: 23 items66years old: 26 items	No expense on the examinee

Long-Term Care Insurance services

- From the first of July 2008, medical treatment service including bath, taking care of the body waste of the elderly, laundry, nursing care are to be commenced for the aged and those who with restricted movement suffering from senile disease such as Alzheimer’s disease, paralysis, Parkinson’s disease.

- In the case of benefiter (person him or herself) receives long-term care grant from long-term care facility, benefiter shall bear a portion of long-term care grant expenses. The assessment of the expense is as follows:

Stay at home care grant	In patient care grant (Old-age care facility)
15% of the long-term care grant expenses	20% of the long-term care grant expenses

For more information

• Homepage: www.nhic.or.kr
• Tel: 1577-1000, (02)390-2000 (Call Center)

 

Application of the four social insurance programs to foreigners

-       The Four Social Insurance Programs apply to foreigners as follows:

Description	National pension	Health insurance	Employment insurance	Industrial accidents insurance
Professional technicians	○	△	○	△
Visiting&living-together workers	○	△	○	△
Working trainees	○	△	○	△
Industrial trainees	○	×	○	×
Trainees from Korean companies based in a foreign country	○	×	×	×

-    Compulsory application △ : Voluntary application or Reciprocity a foreign country f- For Employment Insurance, professional technicians, visiting & living-together workers, and working trainees are given worker status in Korea, and accordingly, are allowed to join the Employment insurance program pursuant to Article 3 of the Enforcement Decree of the Employment Insurance Act. However, industrial workers and trainees from Korean companies based in a foreign company who are not deemed to have the status as workers in Korea are not subject to the insurance program.

-  For National Pension, industrial trainees, trainees from Korean companies based in a foreign company, and visiting & living-together workers are not subject to the program according to the Article 55 and the attached table of the Enforcement Regulations of the National Pension Act. However, professional technicians and working trainees are subject to the Korean National Pension program if they are citizens of the countries where Korean citizens are covered in their national pension schemes under the reciprocity principle*). For citizens from certain countries including Indonesia and Kazakhstan, contributions already paid can be refunded when they leave Korea under the reciprocity principle. Please contact the National Pension Service for more detailed information.

-   There are 8 countries of which citizens are subject to the Korean National Pension program, including Sri Lanka, Indonesia, China, Philippines, Iran, Thailand, Mongolia and Kazakhstan. (More countries are scheduled to be added) However, citizens from 6 countries including Nepal, Vietnam, Bangladesh, Myanmar, Pakistan and Uzbekistan are not subject to the program.

*) What is the reciprocity principle?

-   Under the reciprocity principle, the citizens from certain countries, which have agreements with Korea, shall be equally treated as Korean nationals when laws and regulations regarding the National Pension Program apply. In other words, there will be no discrimination for such foreigners in terms of acquiring pension vested rights and receiving pension benefits.

-  Therefore, a foreign worker subject to the Employment Insurance program must submit an Application Form for Admission(Secession) of Foreigners prescribed in the attached table 1-2 of the Enforcement Regulations of the Employment Insurance Act, together with a copy of his/her Certificate of Alien Registration, to the occupational safety agency which has jurisdiction over the region. However, because the National Pension applies to foreign workers from certain countries under the reciprocity principle, please contact the National Pension Service for more details.

Private insurance in Korea

If you are a foreigner it might be hard to join a private insurance. The company requires many documents that can prove you have lived in Korea more than two years and you will live in Korea for a long time. And if you go to your country you have to come back in 5 years for application of insurance. So counselor suggested that foreigners will be good to join a private insurance in their countries. It’s more efficient. But you can talk with counselor. Here is the telephone number and website

AIG (www.aigdirect.co.kr)

• Tel: 080-911-4949
• Operation hours: 9 a.m.  – 9:30 p.m.

Samsung Life (http://www.samsunglife.com)

• Tel: 1588-3114
• Operation hours: 9 a.m. – 6 p.m.

Kyobo Life (http://www.kyobo.co.kr/)

• Tel: 1588-1001
• Operation hours: 9 a.m. – 6 p.m.

 

Understanding your insurance entitlements while in Korea

Any employers hiring foreign workers under the Employment Permit System must subscribe to four major social insurance plans and foreigners will receive the same benefits as Korean citizens:

• National Pension
• Health Insurance
• Industrial Accident Insurance
• Unemployment Insurance

 National Pension Plan: FAQ

Q: Who can apply?

• All registered foreign residents in Korea between 18-80 years old are eligible.
• An employer will apply on behalf of employees if the company is a registered member of the National Pension Service.
• Everyone working more than 80 hrs per month is entitled to receive a pension.

Q: Who cannot apply?

• Persons who have overstayed their period of sojourn.
• Persons holding visas such as D-1 (Culture/Art), D-2 (Student), D-3 (Industrial trainee), D-4 (General trainee), D-6 (Religious worker), F-1 (Visiting and Joining family), F-3 (Dependent family) and G-1 (Others)

Q: How do I join?

• You can apply through your employer if he/she is a registered member of the National Pension Plan. The required documents are a copy of the foreign resident status report and the Alien Registration Card.
• If you are applying as an individual, go to a local branch of the National Pension Service and submit a monthly income statement.

Q: How much are the insurance premiums?

• National Pension is calculated at 9% of your salary: your employer matches that with 4.5% employer, 4.5% is deducted from your monthly salary.
• If your boss is not deducting the correct amount, you have a legitimate grievance and can file a complaint to the local pension office.

For more information, please visit the www.nps.or.kr or call the National Pension Service hotline at 1355

 

Health Insurance Plan: FAQ

Q: Who can apply?

• As of January 1^st 2006, all foreigners MUST be enrolled in the National Health Insurance plan (i.e.: foreigners holding all visa types, including D-2: Students or D-3: Industrial trainee)

Q: When can I apply?

• Any time after you have registered as an “alien” and have your Alien Registration Card.

Q: How do I apply?

• Present a copy of your Alien Registration Card or a copy of your domestic residency report at any branch office of the National Health Insurance Company.
• Income earners need to present a copy of their income statement.
• Students must submit proof of enrollment.

Q: When will I start paying my premiums to enjoy benefits?

• Insurance premiums are calculated from the day of alien registration or in the case of overseas Koreans with foreign citizenship, the day they make their domestic residency report.
• In order to receive benefits, an individual must also be registered with the National Pension Plan.

Q: When will my insurance coverage be terminated?

• Coverage terminates the day after permanent departure from Korea (excluding short term departure).
• Withdrawal from the National Health Insurance is permitted only on leaving the country permanently.

Q: What is the scope of this application?

• In cases of hospitalization, 80% of the cost is covered by the National Health Insurance Company.
• For outpatient cases, 50%-80% of the cost is covered by NHIC.
• In cases of childbirth and death, the costs are subsidized by the NHIC.  Under these circumstances, a fixed sum of money is paid in cash.

*For more information or to discuss your legal problems in detail or at length, visit www.efl-law.com.