Summary in Plain Language
The seven national departments have introduced the first specialized employee medical insurance support policy in China, targeting over 200 million flexible workers, including food delivery riders, couriers, ride-hailing drivers, and domestic workers. The goal is to resolve long-standing issues within three years, such as restrictions based on household registration, high costs that make insurance unaffordable, lost contribution years due to job changes, and difficulties in receiving medical coverage when seeking treatment in different locations. The policy requires employers to contribute to the insurance, with the government providing additional funding, enabling these workers to enjoy significantly better medical benefits than regular residents. This will prevent them from having to endure minor illnesses or delay seeking treatment for serious conditions.
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Detailed Explanation
1. Why does this policy address the specific challenges faced by 200 million flexible workers?
Research by relevant departments revealed that nearly a quarter of flexible workers have no medical insurance at all, and most of those with it only pay a few hundred yuan per year for resident insurance, which is of little use for those who frequently work in different cities:
- Resident insurance is usually registered in the worker's home city, meaning outpatient expenses for common illnesses like colds or fevers are not covered. Only hospitalization is reimbursable, with a maximum reimbursement rate of 60%. For more serious injuries or chronic diseases, workers have to cover most of the costs themselves.
- In many large cities, workers from other regions were not eligible to enroll in employee insurance due to household registration requirements.
- These workers earn low incomes and are highly sensitive to expenses. Additionally, moving from one city to another for work often makes it complicated to transfer insurance coverage, resulting in lost contribution years and wasted money, leading many to give up on insurance altogether.
2. The new policy eliminates four major barriers to insurance coverage:
- No household registration requirement: Except for a few cities, the policy removes the household registration requirement for flexible workers. With a residence permit or a stable job in the city, they can enroll in employee insurance without returning to their home city. Some regions also provide maternity insurance benefits.
- Lost contribution years are counted: Previously, continuous contribution for a certain number of years was required. Now, even if a worker moves cities or takes breaks, all contribution months are accumulated. After meeting the required duration, they can enjoy lifetime insurance coverage without further payments.
- Lower costs: The premium is based on 60% of the local average salary, not the highest wage. Workers can also opt for a version without a personal account, with all contributions going into a pooled fund for reimbursement, offering similar benefits to regular employees.
- Easy reimbursement: The money in the employee insurance account can be used by family members, and reimbursement can be done across provinces without the need to pay out of pocket first.
3. Employers and the government share the costs:
- Employers are responsible for paying the insurance for their workers. For example, JD.com covers the insurance for over 900,000 couriers, and Taobao covers nearly 300 yuan per month for its riders. Local governments also provide subsidies to employers. For instance, in Hefei, the government subsidizes employers 40 yuan per rider they enroll in insurance, making it more affordable for them to offer this benefit without passing the costs onto the workers.
4. A cost-benefit analysis:
- For example, a food delivery rider in Hefei used to pay 380 yuan per year for resident insurance but received no reimbursement for outpatient expenses. With the new policy, the total monthly cost is around 300 yuan, with the employer and government covering most of it. The reimbursement rate for hospitalization has increased to 85%, and outpatient expenses are partially covered. After 25 years of contribution (20 years for women), the worker can enjoy lifetime insurance coverage without further payments.
5. Implementation and details for the public:
- The policy will be implemented gradually over three years, with priority given to those who work regularly. Part-time workers with few orders are not eligible for the subsidy to prevent abuse. The policy has already been implemented in Jiangsu, Hefei, and Shanghai. To enroll, users can access the local medical insurance app and complete the process online. If an employer does not provide insurance, workers can check the official list on the local medical insurance bureau's website and report any issues. The government ensures that employers allocate the insurance funds to frontline workers.
In summary, this new policy significantly improves the medical coverage and financial benefits for flexible workers, addressing their specific challenges and making it more affordable for them to maintain their health.