"Worsening National Health Insurance Revenue Despite 'Income-Centered' Premium Reform"

National Assembly Budget Office Analysis Report... Annual Revenue Decrease of 2 Trillion Won
"Long-term Measures Needed for Fiscal Stabilization"

[Asia Economy Reporter Lee Ji-eun] An estimate released on the 8th indicated that annual insurance premium revenue could decrease by more than 2 trillion won due to the second phase of the health insurance premium reform implemented from the 1st of this month.

The National Assembly Budget Office (NABO) stated in "Fiscal Estimates and Tax Issues No. 20" that "The government's second phase reform plan includes premium reductions and maintenance of dependent asset requirements, which were not part of the previous bipartisan agreement," and analyzed that "total premium revenue is expected to decrease by an additional 444.7 billion won annually compared to the agreement, and health insurance finances are projected to see a reduction of 2.0854 trillion won in premium revenue annually."

The reform of the health insurance premium system dates back five years. In March 2017, a bipartisan agreement led to the passage of amendments to the National Health Insurance Act and accompanying opinions in the National Assembly plenary session, which outlined a two-phase reform over five years. The first phase of the premium system reform was implemented on July 1, 2018.

The government announced a revised second phase reform plan in June, partially modifying the 2017 bipartisan agreement, and implemented it from the 1st of this month. NABO projected that due to the additions made during this revision, revenue would decrease by 444.7 billion won annually compared to the original agreement. Specifically, revenue from regional subscribers is expected to decline by 128.7 billion won annually due to the post-settlement system, housing debt deduction system, and minimum premium household reductions, while revenue is expected to decrease by 316 billion won annually due to maintaining asset requirements for dependents and applying reductions for those losing dependent status.

Lim Seul-gi, a tax analyst at NABO, stated, "While the total premium revenue reduction was projected at about 849.3 billion won annually during the first phase reform, the revised second phase estimate reaches 2.0854 trillion won annually, indicating an increased impact on health insurance finances." She added, "Considering the expected slowdown in premium revenue growth due to the reform and the persistent factors causing revenue decline, it is necessary to prepare mid- to long-term measures to stabilize health insurance finances."

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