Indonesia raises health insurance premiums again

Jakarta (VNA) – Indonesian President Joko Widodo has decided to raise the premiums for the Health Care and Social Security Agency (BPJS Kesehatan), roughly two months after the Supreme Court annulled his earlier decision to do so.

The higher rates are stipulated in Presidential Regulation (Perpres) No. 64/2020 on health insurance signed by the president on May 5. The Perpres is the second amendment of the previous regulation, Perpres No. 82/2018, on the same matter.

Under a new regulation, the premium for the first-class service was raised to 150,000 rupiah (10.11 USD) per month per person from 80,000 rupiah, almost doubling the cost for the second-class service from 51,000 rupiah to 100,000 rupiah.

The premium for the third-class service was increased by a smaller amount, from 25,500 rupiah to 42,000 rupiah, and the government will provide a 7,000-rupiah subsidy for this service category, so participants only have to pay 35,000 rupiah.

The decree also states that the premium raise only applies to workers who pay their premiums independently, rather than paying through a cost-sharing structure between employees and employers.

According to the decree, the hike takes effect immediately.

BPJS Kesehatan provides universal health insurance coverage for 265 million Indonesians, or about 83 percent of the total population.

In October last year, President Widodo signed a decree stipulating a similar rise for BPJS Kesehatan premiums in an attempt to reduce the deficit of the national health insurance fund. However, the Supreme Court revoked the regulation in March, arguing that the provision violated a number of prevailing laws.

The BPJS Kesehatan recorded a 28-trillion-rupiah cash deficit at the end of 2019, of which 9 trillion rupiah carried over from the previous year./.