29.08.2022

HEALTH INSURANCE OF A SOLE TRADER (ST)

Bulgaria is a country with mandatory health insurance, which means that health contributions of a certain amount are due every month. It is extremely important to monitor the status of your insurances, above all so that you do not compromise with your health and do not risk ending up in an unfavorable situation with the health system if you need it, but also to avoid unnecessary administrative and financial sanctions.

According to the law, the sole trader must pay his/her health insurance contributions, determined on the basis of the income he/she receives. Self-insured persons, such as sole traders, are insured in advance on a monthly income, which cannot be less than the minimum monthly amount of insurance income for self-insured persons and for registered farmers and tobacco producers, determined by the Law on the Budget of the state social insurance, and finally on the income from the activity and the income during the calendar year, according to the reference to their tax return. Registered farmers and tobacco producers producing unprocessed plant and/or animal products do not determine a final amount of insurance income for this activity. Contributions are made for the account of self-insured persons by the 25th of the month following the month to which they relate, and the final insurance contribution - no later than the deadline for submitting the tax return under the Personal Income Tax Act.

When the sole trader temporarily suspends his/her activity, the specified norm becomes inapplicable to him/her, but he/she must continue to pay health insurance contributions. If he/she does not work in another place and no health insurance contributions are due for him/her, he/she should pay insurance contributions on an insurance income, not less than half of the minimum amount of insurance income for self-insured persons, determined by the Law on the Budget of the State Public insurance - by the 25th of the month following the month to which they apply, and carry out an annual equalization of the insurance income according to the data from the tax return, with the final insurance contributions being paid in the deadline for its submission. He/she should also submit a declaration by the 25th of the month following the month in which this circumstance occurred, according to the procedure determined by an ordinance of the Minister of Finance.

Before paying the health insurance contributions under this order, the sole trader must submit to the territorial directorate of the National Revenue Agency a declaration form for the occurrence of the obligation to pay health insurance contributions on this basis. This declaration automatically terminates when insurance begins on another basis. That is, when the trader resumes his/her activity, he/she does not need to declare circumstances related to health insurance.

The health insurance rights of persons who are obliged to pay insurance contributions at their own expense are interrupted if the persons have not paid more than three due monthly insurance contributions for a period of 36 months until the beginning of the month preceding the month of the medical assistance provided. Persons with interrupted health insurance rights pay for the medical care provided to them.

Reference:

Art. 40 of the Health Insurance Act

Art. 109, para. 1 of the Health Insurance Act

Art. 4, para. 3, items 1, 2 and 4 of the Social Security Code

Art. 6, para. 9 of the Social Security Code

Art. 50 of the Personal Income Tax Act.