Health Insurance Benefits

[Anchor Lead]

Under the so-called "Mooncare" program seeking to minimize public health costs, health insurance benefits will be soon provided for MRI exams performed on the face and neck as well. The Korean government has been expanding health insurance benefits, but cheaper hospital bills also means higher health insurance spending.

[Pkg]

Brain MRI exams are performed to check for the symptoms of brain-related illnesses such as stroke or dementia. In October last year, the cost of brain MRI tests was reduced to one-third of the original price thanks to the national health insurance.

[Soundbite] Hong Young-ja(Seoul Resident) : "It used to cost KRW 600,000, but now it's only KRW 190,000. It's much cheaper now."

In the first half of 2019, health insurance benefits will be expanded to MRI tests of the face and neck as well. By next year, the government plans to expand health insurance benefits to all kinds of MRI exams. The current 60-percent health insurance coverage will be raised to 70-percent by the year 2022. But funding remains a problem. The plan requires more than 30 trillion won in additional costs. Estimates show that the short-term surplus that began in 2011 turned into a deficit last year. Even if the 20 trillion won accrued funds are injected to partially make up for the losses, the current estimate shows that they will become depleted in less than ten years.

[Soundbite] Shin Hyun-woong(Korea Institute for Health and Social Affairs) : "Medical costs will increase the financial burden of the national health insurance, which in turn will push up the demand for increasing health insurance premiums and state subsidies."

The government plans to secure funds by raising health insurance premiums by about 3 percent annually. However, concerns are rising not only over the deteriorating financial situation in the National Health Insurance Corporation, but also over the abuse of healthcare services known as "medical shopping."