KMA Forms Task Force to Simplify Claims for Real Loss Insurance... "Determined to Stop It at All Costs"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-ju] The Korea Medical Association (KMA), which opposes the simplification of claims for indemnity insurance, has decided to form a separate task force (TF) and begin full-scale efforts to block the measure.

On the 28th, the KMA announced that it had formed the 'Indemnity Insurance Claims Simplification Response TF,' chaired by Lee Jeong-geun, the KMA's full-time vice president, with a total of 10 members participating.

The KMA explained that, anticipating discussions on related bills with the formation of the National Assembly's second half Political Affairs Committee, it transferred only the indemnity insurance claims simplification response tasks from the existing special committee, the 'Private Insurance Countermeasures Committee,' to the TF for close and focused handling.

The simplification of indemnity insurance claims is a long-standing goal of the insurance industry, with six related amendments to the Insurance Business Act proposed during the 21st National Assembly. However, five health and medical organizations, including the KMA, strongly oppose it, and the bills are currently pending in the Political Affairs Committee's bill review subcommittee.

The KMA clearly opposes the indemnity insurance claims simplification bill, stating that although it emphasizes convenience for the public, it is a harmful law that, based on personal medical information accumulated by insurance companies, is used as grounds for denying insurance payments, refusing insurance subscriptions and renewals, and increasing premiums upon renewal, ultimately causing losses to the public, benefits to insurance companies, and imposing unfair obligations on medical institutions.

The KMA particularly cites the following reasons: ▲unfair regulations and additional administrative burdens forcing medical institutions to electronically transmit insurance claim-related documents for private contracts between private insurers and insured persons; ▲high risk of leakage of the most sensitive personal information, patient medical records; ▲the significant risk of adverse selection, where insurance companies accumulate patient data and selectively enroll patients when selling insurance products later; and ▲the unfairness of outsourcing tasks and aggregating related information at the Health Insurance Review & Assessment Service (HIRA), a public institution, which contradicts its founding purpose for the benefit of private insurers.

Lee Jeong-geun, chair of the TF, said, "It is not reasonable to unilaterally push this forward solely for the benefit of insurance companies. The TF will seek effective countermeasures, including persuading members of the Political Affairs Committee, and with a desperate resolve, we will definitely block it."

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