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If referring to the mandatory health insurance for an OA visa or extension of ( retirement only) then:

For retirement extension: the coverage will increase from 40/400k baht to 3 million baht in September 2022 .

For new OA visa: best to contact your home country Thai Embassy for actual requirements, it was required that a new OA visa requires the 3 million baht coverage from 1st October 2021 but the website may not have been updated 

In answer to your initial question:

It is coverage and the cheapest cover will probably cost you around 30/50k baht with deductibles and depending on your age.

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The Health Insurance requirement only applies to the Non Imm O-A Visa, and subsequent extension of stay applications at Immigration when you entered on that Visa type.

For retirement purposes, apply for the Non Imm O Visa, which requires the Health Insurance cover for only 90 days (the permission granted on entry). It is not required for subsequent 1-year extension of stay at Immigration thereafter.

15 minutes ago, Pinetree said:

yet; I'm waiting for that hit, if it ever comes,  with some concern. 

Nothing more than rumours circulating for the last few years in that respect.
It could force half the retirees out of Thailand.

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