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Compulsory medical insurance to be applied throughout Azerbaijan by end-2020

27 December 2019 19:25 (UTC+04:00)
Compulsory medical insurance to be applied throughout Azerbaijan by end-2020

By Trend

Until the end of 2020, the compulsory medical insurance system will be applied throughout Azerbaijan, Trend reports Dec. 27 referring to the State Agency for Compulsory Medical Insurance.

The transition to the compulsory medical insurance system will be carried out in stages, and in the first quarter of next year, 20 districts will work according to a new order, said Zaur Aliyev, chairman of the agency.

If during this period three more districts are taken into account in a region where the test project is applied, their total number will reach 23. From the second quarter, 17 districts of the western region in Azerbaijan will join the process, from the third quarter - another 14 districts, Aliyev noted.

In the fourth quarter, the system will be applied in Baku, Sumgait and in the Absheron district.

According to the law, starting from Jan. 1, 2020, 90 manat ($52.9) per person (per one calendar year) will be allocated for the population through the state budget within the compulsory medical insurance, Aliyev added.

Contributions for the first three months of 2020 will be paid by the state, and from April 1, compulsory medical insurance contributions will be paid by Azerbaijani citizens, noted the chairman.

Employers and workers involved in the oil and gas sector and engaged in the public sector by using a coefficient of 0.5 percent to a part exceeding 8,000 manat will pay 2 percent of the amount up to 8,000 manat from the wage fund.

This means that if a citizen, for example, earns 8,500 manat ($5,000) per month, 2 percent of 8,000 manat and 0.5 percent of the remaining 500 manat ($294.1) will be paid as contribution within compulsory medical insurance.

Employers and workers not involved in the oil and gas sector and engaged in the private sector by using a coefficient of 0.5 percent to a part exceeding 8,000 manat ($4,705) of their salary will pay 1 percent of the amount up to 8,000 manat from the wage fund.

For individuals implementing work (services) on the basis of civil law contracts, compulsory medical insurance contribution has been established at 2 percent of their monthly income of up to 8,000 manat (8,000 manat included), and at 1 percent of their monthly income of more than 8,000 manat ($4,705).

Unemployed people, retirees, full-time students, citizens receiving social benefits, people involved in agriculture (farmers) will be exempt from payment.

According to the law, the collection of compulsory medical insurance contributions from the population is planned to begin from April 1, 2020.

The amount of payment under the compulsory medical insurance isn’t limited.

If necessary, a citizen will be able to receive medical services without restriction.

($1= 1.7 manat on Dec. 27)

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