Yi Bao Fa [2020] No. 6
To the People’s Governments of all provinces, autonomous regions, municipalities directly under the Central Government, and the Xinjiang Production and Construction Corps:
To implement the important directives of President Xi Jinping on efforts to prevent and control the COVID-19 epidemic, reduce burdens on enterprises, and facilitate the resumption of enterprise production, the following Guiding Opinions are hereby put forward regarding temporary reductions to employee basic medical insurance premiums (hereinafter referred to as employee medical insurance) paid by employers in accordance with relevant stipulations of thePRCSocial Insurance Law and with the approval of the State Council:
1. From February 2020 onward, all provinces, autonomous regions, municipalities directly under the Central Government, and the Xinjiang Production and Construction Corps (hereinafter collectively referred to as provinces) may direct the regions under their coordination to reduce employer contributions to employee medical insurance by half for a period of no more than five months according to the operating conditions of funds and actual needs, provided that the incomes and expenditures of these funds can be ensured over the medium to long run.
2. In principle, regions with sufficient cumulative balance in their pooled funds to meet expenditures for the next six months or more may implement the reduction. Provinces may make deliberate and separate arrangements for regions that need to implement the reduction but do not have sufficient balance. The deferred payment policy may be continued, with a deferment period of no more than six months in principle. Late fees will not be levied during the period.
3. All provinces should guide the regions under their coordination to continually improve processing and management services, so as to ensure the due payment of benefits. The reduction and deferred payment policies implemented may not prejudice the entitlement of insured persons to benefits during the period. Employers participating in the employee medical insurance scheme shall fulfill their legal duties to withhold and remit individual contributions of premiums. Medical insurance agencies shall properly record individual benefits, ensure individual benefits are not affected, and streamline service procedures so that no transactional burden is added to such employers.
4. All provinces should guide the regions under their coordination to strengthen the management of funds, properly monitor statistics, track and analyze the operational condition of funds, and adopt effective measures to control institutional operating risks, so as to ensure that the incomes and expenditures of funds are balanced over the medium to long run. Regions must find their own ways to make up for deficits in the balance of pooled funds arising from reductions. Provinces may reasonably adjust the 2020 budgets for their funds based on the amount reduced.
5. Provinces which have already implemented policies to support enterprises, such as temporary reductions to employer contribution ratios, may continue existing policies, or direct the regions under their coordination to adjust relevant policies pursuant to the directives of these Guiding Opinions. Regions which have already implemented temporary reductions to the ratio of employer contributions to employee medical insurance may not implement the “reduction by half” measures.
All provinces shall improve their consciousness of the need to abide by guiding principles, strengthen organization and leadership, and guide the regions under their coordination to take a category-based approach to relevant work. Provinces deciding to implement reduction policies must file the specific implementation plans with the National Healthcare Security Administration, Ministry of Finance, and State Taxation Administration by March 5. All healthcare security, finance and taxation administrations shall strengthen cooperation, duly fulfill their duties, and spare no effort in ensuring various aspects of healthcare security work are in good order during the prevention and control of the epidemic, in order to ensure the proper implementation of policies. Significant issues encountered during the course of implementation should be timely reported.
National Healthcare Security Administration
Ministry of Finance
State Taxation Administration
February 21, 2020