Gov`t goes after health insurance premium delinquents

From as early as next year, people who fail to pay health insurance premiums more than six times a year and who owe 10 million won (9,390 U.S. dollars) or more in insurance payments will face disadvantages such as loan restrictions.

According to the Strategy and Finance Ministry and the Health and Welfare Ministry Wednesday, they will provide information on people who owe high amounts in back premiums over a prolonged time to the Korean Federation of Banks, and such data will be shared with financial institutions.

The government will submit a bill on the revision of health insurance law to a regular parliamentary session in September. Once the financial institutions receive the information, they will downgrade the credit ratings of the premium delinquents, raise interest rates on their loans, and restrict new lending.

If a delinquent has financial assets or borrows money, the money will be seized by the National Health Insurance Corp., meaning they cannot borrow money from financial institutions.

The insurance corporation decided to impose the rule on people who fail to pay health insurance premiums more than six times a year and whose back premiums add up to 10 million won or more. Current law stipulates that financial institutions can share the information on people who fail to pay employment and occupational health and safety insurance premiums three times a year and who are behind 5 million won (4,695 dollars).

A company official said, “We have decided to impose relaxed criteria since health care insurance premiums are more of a burden to the public. About 10,000 people will suffer disadvantages.”

The corporation said it will first impose the rules on the self-employed and then expand them to companies.

january@donga.com