What is family health insurance and corporate health insurance? Distinguishing family health insurance and corporate health insurance: subjects, code structure, health insurance contribution level…
What is health insurance – family health insurance?
Family health insurance is a compulsory health insurance scheme for households, organized by the state on a non-profit basis.
Subjects purchasing family health insurance are:
- Objects of dignitaries, officials, monks;
- Members whose names are in the same household registered for permanent or temporary residence (except for those required to participate in health insurance);
- People living in social protection facilities (except those who are required to participate in health insurance).
The family health insurance contribution level is calculated based on the basic salary at the time of contribution.
>> See more: Family health insurance premiums – Latest.
What is corporate health insurance (or compulsory health insurance)?
Corporate health insurance is a form of compulsory social insurance for subjects specified in the Law on Health Insurance, organized by the state and implemented not for profit purposes.
Accordingly, subjects participating in compulsory health insurance and social insurance include:
- Employees working under indefinite-term labor contracts, fixed-term labor contracts or seasonal labor contracts from 3 to less than 12 months;
- Employees working under a labor contract with a term of 1 to less than 3 months;
- State officials, civil servants, officers, soldiers;
- Employees working abroad under labor contracts;
- Directors, managers, and executives of enterprises/cooperatives who receive salaries;
- Non-professional workers in communes, wards and towns receive salaries.
>> See more: 6 cases must participate in compulsory social insurance.
Compare family health insurance and corporate health insurance
Family health insurance and compulsory health insurance at enterprises, agencies and units will be similar in terms of health insurance benefits and different in terms of criteria:
- Health insurance payment subjects;
- Health insurance code structure;
- Health insurance premium level.
Find out more details with Online Accounting below.
1. Similarities between family health insurance and business health insurance
Family health insurance and corporate health insurance will be the same in terms of health insurance benefits, specifically
➧ Health insurance benefits when examining and treating patients at the right medical facility:
- 100% of health care costs at commune level;
- 100% of medical examination and treatment costs if the cost for one medical examination and treatment is lower than 15% of the basic salary;
- 100% of medical examination and treatment costs when the patient has participated in health insurance for 5 consecutive years or more and the amount of co-payment for medical examination and treatment costs in the year is greater than 6 months of basic salary;
- 80% of medical expenses for remaining cases.
➧ Health insurance benefits when going to a different health facility for medical examination and treatment:
- 40% of treatment costs in case of inpatient treatment at central hospitals;
- 60% of treatment costs in case of treatment at provincial hospitals (as of December 31, 2020);
- 100% of medical examination and treatment costs at provincial hospitals starting from January 1, 2021 onwards;
- 100% of medical examination and treatment costs at district hospitals.
You may be interested in:
>> Compulsory social insurance benefits;
>> Benefits of participating in family health insurance;
>> Benefits of participating in health insurance for 5 consecutive years.
2. Differences between family health insurance and corporate health insurance
2.1. Subjects of health insurance payment
| Family health insurance | Corporate health insurance |
| Paid by a household member | Paid by the company for employees with labor contracts |
2.2. Health insurance code structure
| Family health insurance | Corporate health insurance |
| The structure of the family health insurance code stipulates:
GD 4 0X XXX XXX XXXX |
The structure of the business health insurance code stipulates:
DN 4 0X XXX XXX XXXX |
Note:
From April 1, 2021, the new health insurance card code will only have 10 characters instead of 15 characters as before. The new health insurance card will print the benefit level code and the resident code.
In case you need to know whether your health insurance belongs to a business or household group, you can look it up on the Vietnam Social Security website, because here the health insurance will display the 15-character card code structure as fdiinvietnam.com shared above.
The 15-character health insurance card code will contain the following information:
➧ First 2 characters (1st cell):
- GD: People participating in family health insurance;
- DN: Workers working in enterprises.
➧ The next character (2nd box) is marked by a number from 1 to 5, which is the health insurance benefit level. Family and business health insurance cards are marked by the number 4.
➧ Next 2 characters (3rd box) – Code of province, centrally-run city, where the health insurance card is issued.
➧ Last 10 characters (4th box) – Personal identification number of the health insurance participant.
>> See more: How to look up the value of health insurance card usage.
2.3. Health insurance contribution level
➧ Family health insurance contribution level
The family health insurance contribution level is calculated based on the basic salary at the time of contribution, at the following rate:
- Person 1: Pay 4.5% of basic salary;
- 2nd person: Pay 3.15% of basic salary (or 70% of 1st person’s contribution);
- 3rd person: Pay 2.7% of basic salary (or 60% of 1st person’s contribution);
- 4th person: Pay 2.25% of basic salary (or 50% of 1st person’s contribution);
- 5th person onwards: Pay 1.8% of basic salary (or 40% of the 1st person’s contribution).
Note:
According to Decree 24/2023/ND-CP, the basic salary from July 1, 2023 has increased to 1,800,000 VND, so the price of family health insurance will also increase, specifically:
| Member
household |
Basic salary 1,490,000 VND | Basic salary 1,800,000 VND | ||
| By month | By year | By month | By year | |
| 1st person | 67,050 VND | 804,600 VND | 81,000 VND | 972,000 VND |
| 2nd person | 46,935 VND | 563,220 VND | 56,700 VND | 680,400 VND |
| 3rd person | 40,230 VND | 482,760 VND | 48,600 VND | 583,200 VND |
| 4th person | 33,525 VND | 402,300 VND | 40,500 VND | 486,000 VND |
| From the 5th person onwards | 26,820 VND | 321,480 VND | 32,400 VND | 388,800 VND |
➧ Corporate health insurance contribution level
The prescribed corporate health insurance contribution rate is 4.5% of the employee’s monthly salary, including:
- Company contribution: 3% of monthly salary;
- Employee contribution: 1.5% of monthly salary.
For example:
The salary of employees at the company is 8,000,000 VND/month then:
- Company pays 3% health insurance: 240,000 VND/month;
- Employees pay 1.5% health insurance: 120,000 VND/month.
In addition to paying enough health insurance for employees, businesses are also responsible for paying social insurance (SI) and unemployment insurance (UI) in accordance with the law.
>> See details: Compulsory social insurance contribution rate.
Questions regarding mandatory health insurance for businesses and households
1. Can employees who have stopped working ask their companies to pay for health insurance?
In case the employee has quit his job and terminated the labor contract with the company, he is not subject to compulsory health insurance.
The employee’s health insurance card will no longer be valid in the month the company reports the reduction in employees. If the employee wants to have a health insurance card for medical examination and treatment, he/she can join the family health insurance.
2. What is family health insurance?
Family health insurance is a compulsory health insurance scheme for households, organized by the state on a non-profit basis.
3. What is corporate health insurance?
Corporate health insurance is a form of compulsory insurance for subjects specified in the Law on Health Insurance, organized by the state and implemented not for profit purposes.
4. Are family health insurance and business health insurance the same?
Family health insurance and business health insurance will be the same in terms of health insurance benefits when receiving medical examination and treatment in the right line and out of line. You can refer to the details at:
>> Similarities between home and business insurance.
5. What is the difference between family health insurance and corporate health insurance?
Family health insurance and business health insurance will differ based on the following criteria:
- Health insurance payment subjects;
- Health insurance code structure;
- Health insurance premium level.
>> See details: Difference between family and business health insurance.
Call us at 0978 578 866 (North) – 033 9962 333 (Central) – 0946 724 666 (South) for support.