Medical insurance fees may rise 44%

The government and the ruling Millennium Democratic Party have determined that an increase in health insurance fees is unavoidable, as policy makers try to obtain greater reserve funds for the regional medical insurance agencies, which face a crisis due to the increase in medical care fees arising from medical reform.

Accordingly, to meet the expected shortfall of 2.4 trillion won in regional medical insurance funds for this year and next, the government is considering an injection of 1.85 trillion won from taxpayer funds in addition to the insurance fee hike this year and next June, with each year seeing 20% increases.

However, the government and the opposition Grand National Party also are considering 38.5% increases for both this month and next June, as well as a one-time fee hike of 61.4% next month, should the public fund injection be insufficient.

The government also has determined that the medical insurance funds for workers and civil servants might also have a shortfall of 1.29 trillion won, and it is currently examining a medical insurance fee hike of 28.4% set for next year.

Additionally, the ruling MDP has called for a measure to prevent medical frauds and to increase medical fee collection rates. The MDP called for a variety of harsh measures against perpetrators of medical fraud.