NHIS "No Factor for Health Insurance Premium Increase Due to Customer Center Affiliation Change"

A member of the National Health Insurance Customer Center Branch of the Public Transport Workers' Union under the Korean Confederation of Trade Unions is holding a hand placard urging the direct employment of non-regular workers in the public sector and marching on the street from Gongdeok to Chungjeongno on Mapo-daero, Seoul, last June. [Image source=Yonhap News]

[Asia Economy Reporter Lee Chun-hee] The National Health Insurance Service (NHIS) has come forward to refute some inaccurate allegations regarding its decision to change the operation method of the currently privately outsourced customer center to a directly managed system by establishing an affiliated institution.

According to the NHIS on the 22nd, at the 'Private Outsourcing Task Discussion Council' held the previous day, it was confirmed that the current regular employees of the outsourced customer center counselors would be converted to regular employees by establishing a separate affiliated institution within the NHIS (direct operation method). Following this, criticisms arose that the transition to an affiliated institution would lead to an increase in insurance premiums and deprive job seekers of employment opportunities, with accusations that the NHIS ultimately gave in to the labor union's "bullying."

However, the NHIS actively denied these claims as inaccurate. First, regarding concerns that the change to an affiliated institution would significantly increase the budget and workforce, thereby causing a rise in health insurance premiums paid by the public, the NHIS emphasized, "Even if changed to an affiliated institution, the current staffing and budget (contract cost) of the privately outsourced operation will be transferred as is, so there will be no additional budget increase or workforce expansion." It explained that the current staff size of 1,633 will be maintained similarly, and the budget will remain at the same scale as the current contract cost of 62.66 billion KRW plus the management and operation cost of 16 billion KRW, totaling 78.66 billion KRW.

Regarding the criticism that this is an unfair case depriving job seekers of employment opportunities, the NHIS drew a clear line, stating it is unrelated. The NHIS emphasized, "The NHIS regular recruitment is for administrative, nursing, and IT positions," and there are no counselor positions for customer center work. It explained that among job seekers preparing for the NHIS regular exams, none wish to work as customer center counselors. The NHIS added, "Those who want counselor positions can apply according to the recruitment plans of the affiliated customer center institution," and "The NHIS will not reduce regular hiring or change recruitment plans because of the affiliated institution."

Finally, in response to criticism that the NHIS gave in to "bullying," the NHIS stressed that this was a social agreement. The NHIS stated that although the National Democratic Labor Union Public Transport Union NHIS Customer Center Branch staged three strikes demanding 'direct employment,' this only delayed the decision of the Task Discussion Council and "the strikes had no impact on the council's decision." Furthermore, regarding potential future controversies over recruitment fairness, the NHIS said, "The upcoming 'Labor-Management and Expert Council (Labor-Management Expert)' will establish fair recruitment procedures such as exams and other necessary measures."

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