United Future Party Proposes Freezing Next Year's Health Insurance Premium Increase Rate... "Must Ease Burden on Households and Businesses"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] Members of the Future United Party belonging to the Health and Welfare Committee requested on the 26th to freeze the health insurance premium increase rate for next year. The purpose is to alleviate the increased burden on businesses and households due to the prolonged COVID-19 pandemic.

They issued a statement on the same day, saying, "There is serious concern that this year's economic growth rate may fall below minus 1%," and "We urge the freeze of next year's health insurance premium rate to reduce the economic burden on households and businesses."

The current health insurance premium rate is 6.67%, with workplace subscribers sharing the cost equally between employees and employers, while self-employed individuals pay the full amount themselves.

The government set a goal in 2017 to raise the coverage rate (the proportion of medical expenses covered by health insurance) to 70% by 2023 and to maintain health insurance fund reserves above 10 trillion won. Accordingly, the current administration has increased health insurance premiums by 8.73% cumulatively over the past three years.

A Future United Party health and welfare committee member emphasized, "If next year's health insurance premium increase rate is reflected at 3.49% according to the first comprehensive health insurance plan announced by the government last May, it will result in a total increase of 12.22%. Compared to the cumulative increase rate of 3.95% over the previous administration's four years, this is a significant burden on the public."

They added, "In this serious crisis situation where the second emergency disaster relief fund is being discussed and the unprecedented fourth supplementary budget is being considered, the health insurance premium increase rate should be decided in a way that reduces the burden on the people."

Next year's health insurance premium increase rate is scheduled to be decided at the Health Insurance Policy Deliberation Committee on the 27th. Earlier, on the 16th, the Korea Employers Federation (KEF) also requested, "Considering the deterioration of companies' payment capacity and the limits of the public's living expenses burden, it is appropriate to at least freeze next year's health insurance premium rate."

This content was produced with the assistance of AI translation services.