Published by ChinaMNC · Haiyan

Haiyan Launches 2027 Employee Medical Mutual Aid Insurance: A Guide for Foreign Founders

Haiyan County has started enrollment for the 2027 Employee Medical Mutual Aid Insurance program. This article outlines the key details for foreign founders operating companies in China, including eligibility, costs, benefits, and enrollment deadlines.

Haiyan County Opens 2027 Employee Medical Mutual Aid Insurance Enrollment

Foreign founders running businesses in China need to stay informed about local employee benefit programs that can affect their operations. Haiyan County has recently announced the launch of enrollment for the 2027 Employee Medical Mutual Aid Insurance (职工医疗互助保障) program. This initiative, led by the labor union and based on voluntary participation, aims to provide an additional layer of financial protection for employees facing hospitalization costs. For foreign founders with staff in Haiyan, understanding this program is essential for compliance and employee welfare.

What Is the Employee Medical Mutual Aid Insurance?

The Employee Medical Mutual Aid Insurance is a supplementary scheme organized by the labor union. It operates on the principle of mutual assistance, pooling contributions to help employees avoid financial hardship due to illness. Importantly, it is not mandatory; employees choose whether to participate. The program supplements basic medical insurance and critical illness insurance by offering subsidies for out-of-pocket medical expenses.

Key Benefits for Enrolled Employees

During the coverage period, if an insured employee is hospitalized or receives special outpatient treatment at a designated medical institution, the program provides a subsidy. After basic medical insurance and critical illness insurance have reimbursed eligible expenses, the employee's personal out-of-pocket portion (within the scope of medical insurance payments) is subsidized at 40%. There is a deductible of 300 yuan, and the maximum annual cumulative subsidy is 30,000 yuan. Each employee can only hold one policy per coverage period. These benefits can significantly reduce the financial burden on employees and their families.

Eligibility Criteria for Employees

To be eligible, employees must meet several conditions. They must already be enrolled in Haiyan's employee basic medical insurance. Their employer—whether a government agency, public institution, social organization, or any type of enterprise (including new business format enterprises)—must have established a labor union. Additionally, employees must not have completed retirement procedures before January 1, 2027. This means that foreign-invested companies and other enterprises operating in Haiyan with unionized staff can offer this benefit to their employees.

Contribution Standards and Payment Methods

The contribution rate is set at 50 yuan per person per year. Payment can be made collectively by the employer's labor union, or jointly by the employer, union, and employee. Once paid, contributions are non-refundable. Employers should note that while participation is voluntary, facilitating enrollment can be a valuable addition to their employee benefits package.

Coverage Period and Enrollment Deadline

The 2027 coverage period runs from January 1, 2027, to December 31, 2027. The deadline for contributions is November 30, 2026. Foreign founders should mark this date and ensure that any interested employees are enrolled in time.

Streamlined Settlement Process

To improve service efficiency, Haiyan has implemented one-stop settlement for the mutual aid insurance. When insured employees are discharged from a designated hospital, they simply swipe their social security card, and the system simultaneously processes both medical insurance reimbursement and the union mutual aid subsidy. This real-time settlement ensures that employees receive their benefits promptly. For medical treatment obtained outside the local area, after completing the required procedures, synchronous settlement is also available.

Exclusions: When Subsidies Do Not Apply

It is important to note that subsidies are not provided in certain situations. These include: hospitalization expenses incurred outside the coverage period; expenses not covered by the employee basic medical insurance fund; and cases involving fraud or cheating. Employers should communicate these exclusions to employees to avoid misunderstandings.

Implications for Foreign Founders

For foreign founders operating in China, staying compliant with local labor and social insurance regulations is crucial. While the Employee Medical Mutual Aid Insurance is voluntary, offering it can enhance your company's benefits package and demonstrate commitment to employee well-being. Moreover, ensuring that your company has a labor union (if required) and that employees are enrolled in basic medical insurance are prerequisites for participation. Foreign founders should verify their union status and consult with local authorities if unsure. As the enrollment deadline approaches, consider whether this program aligns with your HR strategy.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.