Employed Subscribers to Pay 3,400 Won More in Health Insurance Premiums Next Year... Premium Rate Up 2.89% (Update)

[Asia Economy Reporter Choi Dae-yeol] Next year's health insurance premium rate will increase by 2.89% compared to this year. Workplace subscribers will pay an average of 3,399 KRW more per month, and regional subscribers will pay 2,756 KRW more.

The Ministry of Health and Welfare announced on the 27th, at the Health Insurance Policy Deliberation Committee meeting, that the health insurance premium rate for next year was decided as such. The increase rate for next year is lower than this year's (3.20%).

Accordingly, the insurance premium borne by workplace subscribers will rise from 119,328 KRW (as of April this year) to 122,727 KRW. In terms of premium rate, it will increase from 6.67% to 6.86%. For regional subscribers, the average monthly premium (household burden) will increase from 94,666 KRW to 97,422 KRW. In terms of the amount per premium point, it will rise from 195.8 KRW to 201.5 KRW.

To expand health insurance coverage, the government had stated that the premium rate should be raised at a level similar to this year’s over the coming years. However, due to the economic downturn caused by the novel coronavirus infection (COVID-19), there were opposing views to minimize or freeze the increase, which prolonged the meeting. Provider groups proposed a mid-3% increase, while subscriber groups advocated for around 1%, and the decision was reportedly made by vote.

Looking at the premium rate increases over the past five years, it rose by 0.90% in 2016 and was frozen in 2017. Under the current administration, it was decided to increase by 2.04% in 2018, 3.49% in 2019, and 3.20% in 2020, maintaining a 2-3% range over the last three years. Typically, the Health Insurance Policy Deliberation Committee meets in the first half of the year, but this year’s meeting was delayed due to COVID-19 and other factors.

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