Medical insurance premiums to rise

The National Health Insurance premium for wage-earners will increase 21.4 percent next year, while that for self-employed persons or the jobless will rise 15 percent.

The increase rates mean that workers will have to pay 9,000 more a month, while subscribers to regional insurance plans will pay an additional 4,600 won.

The Ministry of Health and Welfare and the National Health Insurance Corporation decided to raise the premiums of self-employed and jobless persons by 15 percent and to have wage-earners pay 3.4 percent of their total earnings instead of the current 2.8 percent.

As a result, the premiums of self-employed and jobless persons will rise 35,498 won a month on average from the current 30,868 won, while wage-earners will pay 50,863 won instead of the present 41,897 won

In consideration of the growing burden on wage-earners, the insurance company's financial operation committee recommended that the government exempt the total increase if premiums rose 20 percent or more.

It also asked the government to revise the National Health Insurance Law to maintain the rate at 2.8 percent for one year.

However, the ministry is examining a plan to reduce the increased amount by 50 to 100 percent for wage earners in the event their premiums rise by 20 percent or more. It would do so by adjusting the premium rates instead of revising the law.

The corporation had proposed that the rate for self-employed and jobless people be increased by 20-30 percent, citing the increase in medical fees caused by the new medical system. The system makes it compulsory for patients to buy medicines at pharmacies rather than directly from their doctors.

However, the rate was set at 15 percent in consideration of the inflation rate and other elements, a corporation official said.

Owing to the fact their regional insurance fund is expected to be used up at the end of this year, an additional increase in the premiums of self-employed and jobless people appears to be inevitable during the first half of next year. The accumulated deficit would be 140 billion won.

Song Sang-Keun songmoon@donga.com