INCREASE IN HEALTH INSURANCE FEE

[Anchor Lead]

The fiscal condition of the national health insurance program has deteriorated so much over the past five years that a health insurance fee hike has become inevitable. The employee-insured workers stand to pay about 7% of their monthly earnings for health insurance next year, roughly 2,000 won more than their monthly insurance premiums this year. The government pointed to several factors for the insurance rate increase, forecasting a strong and sweeping reform for the health insurance scheme.

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An MRI test can identify brain abnormalities such as stroke or dementia. The national health insurance program started covering this test in 2018, reducing a patient's share by two-thirds. In contrast, the health insurance system's burden increased. In fact, MRI and ultrasound test fees have soared by about ten times between 2018 and 2021. Critics point out the insurance program's wider coverage leads to excessive diagnoses and heavier financial load on the health insurance program. The government warned of a strong fiscal reform on the insurance system.

[Soundbite] Lee Ki-il(2nd Vice Health Minister) : "We will discuss the matter until Oct. to find items prone to excessive use and set up a tougher supervision plan for overly frequent users of medical institutions and foreigners."

Inspection will target MRIs and ultrasound tests which are covered under the health insurance program as part of the so-called "Moon Jae-in Care" system. A plan to cover MRIs for muscular and skeletal systems will be reviewed as well. Even if wasteful spending is halted, there still remain factors that burden the finances of the health insurance scheme. A 2.3-trillion-won revenue decrease is projected for next year due to the changed health insurance premium charging system. Also, the revised Income Tax Act has reduced the insurance premium chargeable population. Many project that additional hikes in insurance premium rates are inevitable due to heavier uses of medical services by the aging population. Public health groups argue the state's responsibility should be increased rather than raising health insurance premiums.

[Soundbite] Na Sun-ja(Chair, Korean Health and Medical Workers’ Union) : "The state has never provided financial aid to the health insurance system as the law dictated. The state has failed to give KRW 32 tn in assistance between 2007 and now."

The stipulation that ensures state assistance for 20% of the projected insurance premium revenue is a sunset clause that loses its effectiveness in December. Calls for continued state support mount in order to maintain the fiscal soundness of Korea's national health insurance program.