Health insurance outline

Financial affairs

Health Insurance Societies adopt the 12-month period from April 1 to March 31 as their fiscal year. They cover annual expenditures with revenues collected in the same fiscal year. This practice is known as single-year accounting.
Insurance premiums paid by insured persons and their employers account for the great majority of revenues for Health Insurance Societies. State subsidies for administrative expenses and miscellaneous earnings comprise the small remaining portion.
Benefits for medical service and various allowances account for the largest proportion of Health Insurance Societies' expenditures. Other outlays include contributions to the Health and Medical Service System for the Aged, contributions to the benefits for retired persons, health activities expenses, and administrative expenses. Active involvement in such health activities is viewed by Health Insurance Societies as a wise investment in public health.
Health Insurance Societies are obliged to add a fixed sum to their legal reserve to prepare themselves for future disbursement of benefits when account settlement results in a surplus. They can place the remaining surplus in other reserves or carry the sum forward to the following fiscal year.