Negotiation Regarding the Delay of Merger of Health Insurance Finance

The Millennium Democratic Party (MDP) and the Grand National Party (GNP) held a four people joint meeting attended by floor leaders and chair of the policy making committees on 26th, and negotiated with regard to the delay of the merger of the health insurance finance for one to two years, which is to be implemented on January 1st 2002.

However, the MDP insisted on the one-year delay, while the GNP insisted on at least two-year delay.

If the ruling and opposition parties agree on the delay of the merger, they plan to vote for a revised bill on the delay of the merger on 27th at the Legislation and Judiciary Committee, instead of voting for the bill on the separation of the finance, which was passed by the GNP alone (at the Health and Welfare Committee on 24th). Right after this, they plan to present and pass the bill in the plenary session of the National Assembly.

If the revised bill on the delay of the merger is passed, the implementation of the merger of the health insurance finance, which was scheduled to begin on January 1st 2002, will be postponed.

The chairperson of the MDP policy making committee Park Jong-Woo said, "To delay the merger of the finance for 2 to 3 years means not to merge the finance. It is possible to delay the merger for one year as a preparation period with the premise of the merger to maintain the consistency of the health insurance finance policy."

On the contrary, the GNP`s policy making committee chairperson Lee Gang-Doo said, "The delay the merger should be viewed as a preparation for setting up the insurance premium levy system along with the assessment of the income of the self-employed people. It is realistically difficult to complete the preparation for the merger within a year."

Prior to this, the GNP held an emergent three leaders` meeting, and decided to negotiate with the MDP regarding the revised bill on the delay of the merger for 3 to 5 years and to pass the bill at the plenary session of the National Assembly on 27th, instead of the bill on the separation of the finance.

The United Liberal Democrats` policy making committee chairperson Chung Woo-Taek urged the MDP and the GNP to agree on the delay of the merger saying "the health insurance finance should be merged after increasing the assessment rate of the income of the self-employed people for 1 to 2 years even by mobilizing the National Tax Service."

Yong-Gwan Jung jnghn@donga.com