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The health insurance premium rate for next year was set at 7.09%, up 1.49% from this year. It is the first time since the merger of single insurance in 2000 that the health insurance premium rate exceeded 7%. As health insurance finances deteriorated due to an aging population, expansion of health insurance coverage, and restructuring of the charging system, the premium rate was expected to rise. However, if the premium rate rises more steeply in the future, the burden of subscribers will increase.
The Ministry of Health and Welfare announced on the 29th that it has decided to raise the health insurance premium rate by 1.49% for next year by holding the Health Insurance Policy Review Committee (Health Review) at 7 pm on the 29th. As a result, the premium rate for health insurance workers at work will rise from 6.99% to 7.09% next year, and the amount of points for insurance premiums for local insurers will rise from 205.3 won to 208.4 won, respectively.
The average monthly insurance premium for employers will increase by 2,069 won from 144,643 won this year to 146,712 won next year. However, as the limit of non-taxable meals has been expanded due to the revision of the Income Tax Act, the extent of the increase will decrease as the income subject to insurance premiums decreases in the case of employers who receive an increase in the non-taxable meal allowance. The average monthly insurance premium for regional subscribers will increase by 1598 won from 105,843 won this year to 107,441 won next year. Since the second-stage reform of the health insurance premium system will be implemented from September, even if the premium rate increases by 1.49%, the average premium burden is expected to be 84,986 won, which is 2857 won less than in July this year.
The health insurance premium rate was usually decided by voting after coordinating opinions due to differing opinions among members, providers, and representatives of the public interest. The health insurance premium rate continued to increase after medical insurance by region and job group was integrated into a single insurance under the National Health Insurance Act in 2000. It exceeded 5% for the first time in 2009, and rose to the 6% level in 2015.
The Ministry of Health and Welfare said, “In 2023, the impact of the second-stage reform of the health insurance premium system will be fully reflected, and the income subject to insurance premiums decreased due to the revision of the Income Tax Act. There was a need for an increase to the previous year’s level due to the need for expenditure to implement the task. ” explained.
With the aging population and the expansion of health insurance coverage, the use of medical care is increasing, and the financial expenditure on health insurance is on the rise. On the other hand, health insurance revenue will decrease by about 2 trillion won per year due to the reorganization of the imposition system. The restructuring of the levy system aims to lower the average monthly insurance premium for regional subscribers and strengthen the conditions for dependents, but the conversion rate of dependents to regional subscribers is about 1.5%. In the long term, there are many prospects that the health insurance finances will become weak amid the low birth rate.
According to the Board of Audit and Inspection, health insurance recorded a deficit for three consecutive years (2018-2020) since 2018. There is also a forecast that the health insurance premium rate could reach the legal upper limit of 8% by 2026, within the term of the Yoon Seok-yeol administration. There are opinions that the law should be amended to raise the insurance premium rate to 8% or higher, but there is a lot of public opinion that the burden of health insurance premiums is high in household spending, so a social consensus is needed.
According to the assessment that the health insurance finances have become weak due to the increase in ‘excessive medical care’ due to the policy to expand health insurance coverage, the government plans to prepare and announce measures to reform the spending structure by October. On the other hand, civil society views the expansion of health insurance coverage as an essential measure and argues that the government should increase support for health insurance finance.
Civic groups such as the Free Medical Movement Headquarters, the Health and Medical Association, and the Federation of Health and Medical Organizations held a press conference against the increase in health insurance premiums in front of the Seoul International Electronic Center at 6 pm on the same day and said, “In a situation where the livelihood crisis is severe due to inflation and interest rate hikes, the health insurance premium rate If it rises, people’s lives will become difficult.”
Currently, in accordance with the National Health Insurance Act and the National Health Promotion Act, 20% of the expected income from insurance premiums for the year is supported by the national treasury. According to the health insurance union, the government subsidy rate of the Lee Myung-bak administration was 16.0%, the Park Geun-hye administration 15.0%, and the Moon Jae-in administration 13.9%. The provisions of the law specifying national treasury support are subject to sunset on December 31 of this year. Civic groups said, “The government has proposed an increase in premiums every year in violation of the 20% of the national health insurance burden specified by law. It should be a permanent law,” he said.
In a statement on the same day, the health insurance union pointed out that co-payments for COVID-19, a first-class infectious disease that requires quarantine, should be supported by the government, but they are not fulfilling their national responsibilities and are only trying to increase health insurance premiums, saying that they have to be paid by the health insurance finance. In a statement on the same day, the Hospital Expenses One Million Won Coalition said, “By expanding health insurance coverage, we can reduce the burden of hospital expenses on patients. It is necessary to raise health insurance premiums appropriately. Businesses must also fulfill their social roles, and the government must fully fulfill its financial responsibilities (such as support from the state treasury).”
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