Local subscribers’ health insurance rates will be reduced
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As early as February, local subscribers who own cars and homes in South Korea will have their health insurance premiums lowered by the government and the People Power Party.
Three-quarters of local subscribers’ health insurance premiums will drop by 25,000 won a month. Because they own homes and vehicles despite having no income, retirees who previously paid high insurance premiums will be less likely to complain about this.
However, because of the new policy that was announced three months prior to the general election, the government’s health insurance reserve will be exhausted even faster.
In contrast to the employee insured, whose income is the only factor used to determine their health insurance premiums, 9.1 million households, or 14.63 million
Locally insured individuals have been required to pay higher health insurance premiums because they own homes and vehicles. The introduction of the new policy came about as a result of criticism that it is difficult to determine the income of self-employed people and that it is unfair for wealthy people to pay higher health insurance premiums than those with lower incomes.
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The fact that local health insurance premium revenue will drop by one trillion won annually, however, is a serious concern. This year, it is anticipated that health insurance premium revenue will total 98.8 trillion won, while expenses will come to 100.2 trillion won.
Due to society’s accelerated aging, medical costs for the elderly are rising, and the current reserve of 23.8 trillion won will run out entirely in four years. years later and enter the negative.
This could give rise to a claim that, in order to prevent the reserve from being exhausted, health insurance premiums ought to be raised considerably from their current 7.09 percent in the coming years.
The public should be given access to the new policy’s short- and long-term effects on health insurance financing, as well as an open review by the government.
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