Whether GSS affects retirement is a topic that generates diverse opinions. The main questions are especially;
- Can people with outstanding General Health Insurance (GSS) premium debts retire?
- Are GSS premium payments taken into account when determining eligibility for retirement?
Is General Health Insurance (GSS) Mandatory?
Before addressing whether General Health Insurance (GSS) affects retirement, it helps to define GSS: a system that allows individuals who do not work and lack social security, along with their families, to receive health services. Financing of health problems experienced by these people or their dependents is covered under the General Health Insurance (GSS) scheme. GSS became mandatory on 01.01.2012 and replaced the earlier Green Card system with a more systematic and equitable approach.
What Advantages Does General Health Insurance (GSS) Provide?
Although there are some negative perceptions about GSS since its introduction in 2012, the program is important because it covers health expenses for people and families without any health coverage. GSS ensures that everyone can access health services fairly and effectively.
Scope of General Health Insurance (GSS)
The scope of General Health Insurance (GSS) is broad. As of 2018, more than 7 million people were covered by this insurance. GSS enables all citizens to benefit from health services equitably. Those included within GSS coverage are:
- Individuals who are not beneficiaries of any health service through a parent, spouse or child (dependents) and who have no health coverage
- Those who do not have income subject to SGK
- People who are not currently receiving a retirement pension from SGK
- Those who are not employed under a contract at any company and do not have insurance
Conditions to Benefit from General Health Insurance (GSS)
Anyone meeting the conditions above can fall under GSS coverage, subject to paying a modest monthly premium. The premium amount is determined by an income test. If the per-person monthly household income is below 676 TL, no premium is charged. This also clarifies questions such as how the 53 TL GSS premium was calculated:
- Individuals whose per-person household income is below one-third of the gross minimum wage can receive services without paying a GSS premium. For example, if the 2018 gross minimum wage is assumed to be 2,029 TL, the per-person household income must be less than 679 TL. If a household’s per-person income is declared below this threshold, officials conduct an income test; if the declaration is confirmed, the person can access health services without paying a GSS premium.
- If per-person household income is between 679 TL and the gross minimum wage (2,029 TL), the monthly GSS premium in 2018 was set at 81 TL. The widely-seen 53 TL monthly premium corresponds to 2017 rates.
- For those in GSS whose monthly income exceeds one gross minimum wage (2,029 TL), the monthly premium in 2018 was set at 243 TL.
Relationship Between General Health Insurance and Retirement
The GSS premiums paid since 2012 have raised questions about whether these payments contribute to retirement rights. However, neither GSS legislation nor SGK regulations link GSS payments to retirement. Rather than asking whether retirees must pay GSS premiums, it is important to note that GSS has no connection to retirement. GSS is a system that enables people without social security to benefit from state-provided health services. Therefore, GSS does not affect eligibility for retirement under any circumstances. Only those who pay higher GSS premiums (i.e., whose monthly income exceeds the gross minimum wage) may choose to become voluntarily insured in addition to using health services.
Retirement Rights of Citizens Paying GSS Premiums
To understand the retirement implications for people covered by GSS, consider the conditions that qualify someone for GSS:
- They must not be engaged in any commercial activity.
- They must not be involved in agricultural activities.
- They should not be paying optional insurance premiums (except those whose monthly income is above one gross minimum wage are excluded from this rule).
- They must not be employed as insured workers under an employment contract.
- They must not be receiving unemployment benefits. While receiving unemployment benefits, individuals can access health services because SGK covers the related contributions; when unemployment benefit payments end, the person is automatically included in GSS.
Within these conditions, GSS premium payments do not contribute to retirement, and GSS premiums paid cannot be used to qualify for retirement.
Receiving Health Services by Paying 81 TL per Month and Its Effect on Retirement
Over recent years, many measures have been taken for citizens without health coverage, and GSS, which benefits more than 7 million people, plays an important role. Hundreds of thousands of people have regularly paid a small premium to access health services. Questions such as “Does GSS count toward retirement?” are common. The monthly 53 TL rate in 2017 rose to 81 TL in 2018 with the new minimum wage, but these payments do not affect retirement eligibility. However, for people commonly referred to as “those stuck due to the retirement age”—who meet conditions other than age—paying GSS premiums can allow them to obtain health services while they await eligibility based on age.
Effect of GSS Debt on Retirement
An important issue has been whether individuals with past GSS premium debts could retire. Until 2017, legislation required that prospective retirees have no outstanding GSS premium debt. This requirement was removed in 2017; having a GSS debt is no longer a barrier to retirement.