According to the Law of the Republic of Azerbaijan “On Medical Insurance” from January 1, 2021, compulsory health insurance premiums will be collected from employees of the public and oil sectors, non-state and non-oil sectors, individuals performing works (services) on the basis of civil law contracts and individuals involved in entrepreneurial activity .
Thus, 2% of the monthly payroll bill up to 8,000 manat and 0.5% of the monthly payroll bill over 8,000 manat will be charged from employers and employees working in the public and oil sectors as compulsory health insurance premium.
Taking into account that until January 1, 2022, a 50 percent discount is applied to the amount of insurance premiums paid by employers and employees working in the non-state and non-oil sectors from the part of the monthly payroll bill up to 8,000 manat, compulsory health insurance premiums in the amount of 1% of the monthly payroll bill up to 8,000 manat and 0.5% of the part above 8,000 manat will be charged from employers and employees in the non-state and non-oil sectors. From 2022, employers and employees in this sector will pay 2% of the monthly payroll bill up to 8,000 manat.
Compulsory health insurance premiums of 2% of the monthly income up to 8,000 manat and 1% of the monthly income over 8,000 manat are set for individuals performing works (services) on the basis of civil-law contracts.
Compulsory health insurance premium of 4% of the minimum monthly wage is established for individuals (individual entrepreneurs, private notaries, members of the bar) registered as taxpayers under the Tax Code, except in cases of temporary suspension of entrepreneurial activity or other taxable operations .
Compulsory health insurance premium for other persons is paid from the state budget. Thus, compulsory health insurance premiums are allocated from the state budget for both the above-mentioned categories of the population and other persons. Compulsory health insurance premiums will be paid in stages in 2020 and 2021 at the expense of the state budget.
The amount of insurance premium per capita is 90 manat for administrative territorial units where compulsory health insurance has been applied since January 2020; 90 manat + 90 manat x country consumer price index -for administrative territorial units where it will be applied since January 2021; 67.5 manat + 67.5 manat x country consumer price index- for administrative territorial units where it will be introduced since April of 2021.
Compulsory health insurance from January 1, 2020 has been introduced in the Nakhchivan Autonomous Republic, Mingachevir, Gusar, Khachmaz, Guba, Shabran, Siyazan, Khizi, Gobustan, Ismayilli, Agsu, Shamakhi, Balakan, Zagatala, Gakh, Sheki, Oguz, Gabala, Goychay Ujar, Zardab, Kurdamir, Yevlakh and Agdash districts. From January 1, 2021, another 36 cities and districts will join the compulsory health insurance system. From April 1, 2021, the population of Baku, Sumgayit, Absheron, Khankendi, Gubadli, Zangilan and Shusha will be covered by compulsory health insurance.
According to the Law of the Republic of Azerbaijan “On Medical Insurance”, the entire population is considered insured and has an equal right to use the medical services provided in the service package. The Law does not apply to conscripts, accused persons detained in pre-trial detention centers, persons serving sentences in penitentiaries (excluding precinct-type penitentiaries), as well as persons entering the country temporarily, residing temporarily and permanently in the country in accordance with the Migration Code, other than foreigners and stateless persons who have received refugee status in the Republic of Azerbaijan and are under the protection of the UN High Commissioner for Refugees in the Republic of Azerbaijan .
Thus, in 2021, compulsory health insurance will be introduced throughout the country.
From 2023, according to Article 15-2.3.6 of the Law of the Republic of Azerbaijan "On Medical Insurance", a compulsory health insurance premium of 48% of the minimum monthly salary for the calendar year is provided for independent payers. For example, currently the minimum monthly wage in the country is 250 manat. Compulsory health insurance premium is calculated in the amount of 48% of this amount, i.e. 120 manat for a calendar year.