Shenzhen launches new medical insurance transfer rules

A new joint notice on the transfer and continuation of basic medical insurance relations issued by the Shenzhen Municipal Healthcare Security Bureau, the Shenzhen Finance Bureau and the Shenzhen Municipal Taxation Bureau of the State Taxation Administration has taken effect recently. The notice provides clearer rules for people moving into Shenzhen and for handling interrupted contribution periods.

Under the notice, Shenzhen basic medical insurance participants may apply to transfer an already suspended basic medical insurance relationship from another city into Shenzhen. Once transferred, contribution years accumulated under employee medical insurance in other cities will be mutually recognized and merged into the insured person’s Shenzhen cumulative contribution period, with no double counting of the same months.

To address interruptions in contribution records during transfers, employee medical insurance participants who transfer into Shenzhen may apply for make-up payments if either the contribution interruption before the transfer does not exceed three months (inclusive), or they already had continuous participation of two years or more at the time of transfer and switched between employee insurance and resident insurance for employment reasons, with the interruption not exceeding three months (inclusive).

Make-up payments are calculated using the city’s year-before-last full-scope monthly average wage as the base. Applicants pay the Tier-1 employee medical insurance contribution rate. After completing the make-up payment, medical insurance benefits for the interrupted period may be retroactively enjoyed.

If the interruption exceeds three months, make-up payment is not allowed. However, the insured person may enjoy medical insurance benefits from the month following the completion of registration and payment, a measure designed to reduce the short-term impact of contribution gaps on benefit access.

The notice also clarifies rules for stopping contributions and enjoying retirement medical insurance. If a person’s actual paid contribution years under Shenzhen employee medical insurance reach 10 years and their cumulative contribution years (including recognized years from other places) reach 25 years, they may stop paying and continue to receive Tier 1 retirement medical insurance benefits.

If they have less than 10 years of Tier 1 contributions, they may directly receive Tier 2 benefits, or choose to continue participating in Tier 1 until reaching 10 years and then receive Tier 1 benefits.

If actual paid years reach 10 but cumulative years are under 25, the insured may choose to pay monthly or make a one-off payment until the required cumulative years are met. During monthly payments the person receives in-service medical insurance benefits; the contribution standard follows the Shenzhen Medical Security Measures. The insured may change the payment method once within 12 months or convert to a one-off payment. One-off payments are made at the current month’s contribution standard and, after reaching the required period, the person becomes eligible for retirement medical insurance benefits.