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Corporate Service - China

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Q&A Regarding China's " The Social Insurance Law of the People's Republic of China"(3)

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Q: What components make up the benefits of the new rural social endowment insurance?
A: The benefits of the new rural social endowment insurance consist of basic pensions and individual account pensions. Rural residents who participate in the new rural social endowment insurance and meet the conditions stipulated by the state shall receive the benefits of the new rural social endowment insurance on a monthly basis.

Q: What components make up the basic medical insurance for urban residents?
A: The basic medical insurance for urban residents is implemented through a combination of individual contributions and government subsidies. The government will provide subsidies for the personal contribution portion required by those receiving the minimum living allowance, disabled people who have lost their ability to work, elderly people over 60 years old from low-income families, and minors.

Q: Which medical expenses are not covered by the basic medical insurance fund?
A:
  1. Those that should be paid from the work-related injury insurance fund;
  2. Where it should be borne by a third party;
  3. Those that should be borne by public health;
  4. Seeking medical treatment abroad.
Medical expenses that should be borne by a third party in accordance with the law, if the third party fails to pay or the third party cannot be identified, shall be paid in advance by the basic medical insurance fund. After the basic medical insurance fund has made an advance payment, it has the right to claim compensation from a third party.

Q: How should an individual's basic medical insurance relationship be handled when they are employed across different coordinated regions?
A: When an individual is employed across different coordinated regions, their basic medical insurance relationship will be transferred along with them, and the contribution years will be cumulatively calculated.

Q: Who stipulates the management measures for the new rural cooperative medical care?
A: The state establishes and improves the new rural cooperative medical care system. The administrative measures for the new rural cooperative medical care system shall be prescribed by The State Council.

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