Compulsory medical insurance services in Azerbaijan to consist of single package
The amendments were made to the Law of the Republic of Azerbaijan "On Medical Insurance" at the plenary meeting of the Azerbaijani parliament on December 3, 2019, Trend reports.
In particular, compulsory medical insurance services will not consist of main and additional packages of medical services. The package will simultaneously cover outpatient and inpatient clinics and services.
In accordance with the law, an amount worth 90 manat ($53) per person (per one calendar year) will be allocated for the population from the state budget within the compulsory medical insurance beginning from January 1, 2020.
Employers and employees working in the state and oil sectors will receive two percent of their monthly payroll fund if salary reaches up to 8,000 manat ($4,715) and 0.5 percent if salary reaches more than 8,000 manat.
This means that if a citizen, for example, earns 8,500 manat ($5,008) per month, two percent out of 8,000 manat and 0.5 percent out of the remaining 500 manat ($294) will be covered by compulsory medical insurance.
Employers and employees working in the non-state and non-oil sectors will receive one percent of their monthly payroll fund in the amount of up to 8,000 manat and 0.5 percent of the salary worth more than 8,000 manat.
Compulsory medical insurance is set for individuals performing work (services) on the basis of civil law contracts in the amount of two percent of a part of monthly income up to 8,000 manat (including 8,000 manat), over 8,000 manat - one percent.
Moreover, a contribution is set at four percent of the minimum monthly salary except for temporary suspension of activity or other taxable operations for individuals taxed as taxpayers in accordance with the Tax Code (with the exception of individual entrepreneurs, private notaries, bar associations).
At the same time, in accordance with the Tax Code, a compulsory medical insurance contribution is set in the amount of four percent of the minimum monthly salary of individuals (individual entrepreneurs, private notaries, members of the bar association), registered as taxpayers, with the exception of cases of temporary cessation of entrepreneurial activity or other taxable transactions.
In accordance with the law, the contributions for compulsory medical insurance from the state budget is planned to be collected from April 1, 2020.
From 2023, compulsory medical insurance of independent payers is envisaged in the amount of 48 percent of the minimum monthly salary for a calendar year upon the article 15-2.3.6 of the Law.
For example, presently, the minimum salary in the country reaches 250 manat ($147). An insurance premium for compulsory medical insurance is accrued in the amount of 48 percent of this amount - 120 manat ($70) for a calendar year.
The item “amount of exemption and waiting period” has been removed from the law and replaced with the item “amount of co-financing”. The total amount of financing means the part of losses or losses as a result of the insured event, not covered by the insurance obligation and reimbursed by the insured.
The amount of co-financing is among services and paid directly to the medical institution that renders medical services. The application of co-financing amounts will also begin from April 1.
In accordance with the law, the entire population is considered insured and has equal rights to receive medical services envisaged as compulsory medical insurance services.
As for the scope of the law, this law is also aimed at protecting the rights of servicemen of the active military service, accused people held in pre-trial detention centers, the individuals serving sentences in correctional institutions (with the exception of penal institutions), foreigners and stateless people who have received refugee status in Azerbaijan and are under the care of the Office of the United Nations High Commissioner for Refugees in Azerbaijan.
In accordance with the amendments to the law, compulsory medical insurance will be gradually implemented during 2020, taking into account the sequence set by the agency for the administrative-territorial units of the country.
The law will come into force on January 1, 2020 after its signing by the president of Azerbaijan.
(1 USD = 1.7 AZN on Dec. 13)
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