The Measures of Basic Medical Insurance for Employees in Shanghai (Draft Amendment) (the “Draft”) was released on April 27, 2013 to solicit public comments.

According to the Draft, the scope of those eligible to participate in the Basic Medical Insurance is extended to all employees of employers which are located in Shanghai. The migrant workers thereinto holding non urban household register may enjoy medical insurance treatment, and detailed measures will be stipulated separately.

According to the Draft, a waiting period for the treatment of Basic Medical Insurance for self-employed persons is set out, with detailed measures to be stipulated separately.

Moreover, for persons reaching the statutory retirement age, who do not process the retirement formalities but extend their service period, their Basic Medical Insurance formalities shall be executed in accordance with the regulations for on-post workers. However, the specific provisions about the treatment of Basic Medical Insurance for those who flexibly delay claiming the basic pension will be stipulated separately.

KWM Comments:

The Draft promulgated by Shanghai government is an amendment of the Measures of Shanghai Municipality on the Basic Medical Insurance for Urban Employees which was amended on December 20, 2010, referencing the Social Security Law (effective as of July 1, 2011) and a serious of Shanghai local policies regarding the medical insurance for employees. The Draft, which stipulates the scope of the insured, the medical insurance treatment of self-employed workers and workers who postpone retirement, and other matters, deserves the attention of Shanghai employers.