From October 18, health insurance card in Vietnam shall be not be recovered when there is a reduction in the number of employees

On October 18, 2016, Ho Chi Minh City Social Insurance issued Official Dispatch 2533/BHXH-QLT to all employers in Ho Chi Minh City regarding the non-recall of health insurance cards when an employee is reported to have decreased social insurance participation.

According to the Official Dispatch:

- When there is a reduction in the number of participants in health insurance in Vietnam, the unit must promptly compile a list of reductions and send it to the Social Insurance agency within that month (calculated up to the last day of the month);

- If the reduction is reported after the last day of the month, the value of the health insurance card for the following month must be fully paid, and the health insurance card will be valid until the end of that month. The Social Insurance agency will not reclaim the card in cases of reported reductions.

Example: An employee terminates on October 28, 2016, the employing unit reports the reduction on October 31, 2016, then there is no need to pay health insurance for the following month, i.e., from November 2016 onwards. In the case of reporting the reduction from November 1, 2016, to November 30, 2016, health insurance for November 2016 must be paid.

Simultaneously, employing units need to note several issues as follows:

- Carry out the reduction report through the electronic transaction system to determine the above-mentioned reduction date. If the unit sends the reduction report dossier by postal service, the reduction date is counted from the day the Social Insurance agency receives the dossier.

- Inform the employee who terminates their employment, if not subject to other compulsory Social Insurance participation, to immediately register for health insurance under the household program (before 10 days prior to the expiration of the old card to extend the card). This regulation ensures the right for workers to participate in health insurance for 05 consecutive years.

- If a reduced employee, suffering from chronic, severe illness, requests to pay the full remaining value of the card for medical examination and treatment while waiting to participate in health insurance under the household program, the Social Insurance agency will comply with the request of the employee and the employer.

This Official Dispatch is effective from October 18, 2016, and annuls Clause 1 Official Dispatch 1989/BHXH-QLT.

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