Changing jobs? Switch to National Health Insurance or continue membership

Along with pension systems, all registered residents residing in Japan must be covered by the public health insurance system. If you are employed by a business, you are most likely to enroll in Employee’s Health Insurance System through your employer. Your medical expenses are covered by Employee’s Health Insurance while you work for an employer, but your membership will be terminated once you leave a job. The same as the pension systems, you can be enrolled in the same insurance system by your new employer with no intervals if you start a new job next day you left your previous job. But if not, you need to choose from switching to National Health Insurance, or continuing your membership with your current health insurance system.

How to switch to National Health Insurance and what to bring

Similar to Employee’s Pension Insurance System and National Pension System, a person who left a job and lost his membership of Employee’s Health Insurance System have to apply to switch to National Health Insurance System at a municipal office within 14 days. To apply, just visit Insurance and Pension Division of the municipal office your address is registered and advice the staff that you want to switch your health insurance to National Health Insurance. It doesn’t take long at all, but you must complete this procedure if there is a day or more interval before you start a new job, unless you choose to continue your current membership.

What to bring

Document which proves the date of resignation (E.g. certificate of losing a qualification for health insurance)
Photo ID
Inkan (personal seal)

※required documents may vary depending municipalities. Inquire your local office beforehand.

About premiums of National Health Insurance

Annual premium of National Health Insurance is calculated based on your income of the previous year (January to December), and you pay the premium from June to March following year by 10 instalments. Similarly, your Employee’s Heath Insurance premiums calculated based on your income in previous year and deducted from your monthly salary by your employer. Therefore, the amount of your insurance premium you are required to pay will not drop significantly even though you become unemployed and switch to National Health Insurance.

In addition, while Employee’s Health Insurance System exempts your dependent family member’s premiums if conditions are met, National Health Insurance System has no deductions or exemptions for dependents. National Health Insurance premiums are calculated for all family members based on total household income, therefore continuing Employee’s Health Insurance membership can be cheaper option depending on the number of dependents and household income of your family. Also, calculations of National Health Insurance premiums vary depending on municipalities. Inquire Insurance and Pension Division of your local office to know the exact premium price you will have to pay after you switch to National Health Insurance.

National Insurance premiums can be paid by payment slip or bank transfer. Some municipalities also accept payments by electronic money or credit card.

If you wish to continue Employee’s Health Insurance membership

If you want to continue your membership of Employee’s Health Insurance System after considering premiums or other issues, you are allowed to do so for 2years from the date of resignation if you meet the following conditions.

You were covered by Employee’s Health Insurance System for at least 2 continuous months before the date you lose a qualification for the health insurance
Submit the application to continue a membership of Employee’s Health Insurance System within 20days from the date of resignation

Once you choose to continue a membership, you will not be allowed to terminate the membership for 2 years for the reason you wish to switch to National Health Insurance. However, you will lose your membership if you start working for a new employer and enrolled in health insurance, fail to pay premiums by due date, are qualified for medical-care system for the latter-stage elderly, or decease. The application to continue a membership of Employee’s Health Insurance System can be made at a branch office of Japan Health Insurance Association in your area.

Change jobs, change health insurances

The same as pension, public health insurance is very important part of the social security system of Japan. Unlike pension system, you can choose whether switch to National Health Insurance or continue Employee’s Health Insurance of your previous job. Whichever you choose, the most significant concern would be premium amounts. It is important to research which way is better for you considering your income and family structure.