Generally speaking, the amount of insurance premium paid by the insured is the product of insurance amount and insurance rate, that is, insurance amount × insurance rate = insurance premium. Insurance rates are generally composed of pure rates and insurance rates.
Traditionally, the rate composed of pure rate and insurance rate is called gross rate. The pure rate, also known as the net rate, is the main part of the insurance rate and is determined according to the loss probability. The premium charged at the pure rate is called pure premium, which is used to compensate and pay the insured after the insurance accident. The premium rate is a secondary part of the premium rate, and the premium charged according to the premium rate is called premium. Calculated on the basis of the insurer's business expenses, used for the insurer's business expenses, handling fees and providing part of the insurance profits.
The contribution rate is the proportion of contribution, which is determined according to wage income. Generally speaking, medical insurance is determined according to the overall planning area, and the payment base and payment base range are determined according to the annual per capita consumer price index, which is not less than 60% but not more than 300%.
The unit rate of basic medical insurance is 6%, and the individual rate is 2%. For individual insurance, the payment rate is 8%.