7 Officials to Be Reprimanded

The Board of Audit and Inspection (BAI) announced Monday that it was recommending reprimands for seven high-ranking officials, including Deputy Minister of Health and Welfare Lee Kyong-Ho, for failing to ensure measures in place to stabilize health insurance finances.

The BAI had a special inspection on `the actual condition of the national health insurance finance operation` between April 9th and May 9th, targeting Ministry of Health and Welfare (MHW), the National Health Insurance Corporation (NHIC), and the Health Insurance Evaluation Institute (HIEI). Through the decision of the Committee of Audit and Inspection, the BAI reported the result to the MHW yesterday. The BAI recommended the dismissal of one official, the releasing of a director-level official from the duty, and the reprimanding of other five high-ranking officials, including Deputy Minister.

However, the BAI stated that although the former Health Minister Cha Hong-Bong deserved a reprimand as he incurred the financial problems and inconvenience through the operation of the separation of hospitals and pharmacies, there was nothing it could do as Cha has been replaced.

The BAI announced the inspection results as following: The MHW pushed forward the separation of hospitals and pharmacies without an adequate financial plan. The MHW also pushed for the separation policy without considering anticipated inconvenience for the people. The MHW incurred people’s mistrust on policy through the lack of explanation and advertisement of the policy. The MHW led the national health insurance to the shambles through its failure to handle the problems of the separation policy.

The BAI also stated that the NHIC and the HIEI neglected to levy the insurance fee, provided the false personnel expenses, such as retirement fee, and increased the health insurance deficit due to the weak inspection system on the unfair claims.

However, officials at the MHW and other ministries said that the punishment was unfair as the policy decisions rested with ministers. Health Deputy Minister Lee also looked unconvinced by the result reported by the BAI.

Song Sang-Keun songmoon@donga.com