Ruling Party and Government to Abolish Health Insurance Premiums for Regional Subscribers' Vehicles... 'Property Insurance Deduction Also Expanded to 100 Million Won' (Update)

3.33 Million Regional Subscribers Receive 25,000 KRW Monthly Insurance Premium Reduction
To Enhance Equity with Workplace Subscribers

The People Power Party and the government decided on the 5th to abolish the insurance premiums imposed on automobiles of health insurance regional subscribers. The deductible amount for insurance premiums on the property of regional subscribers will also be increased from the current 50 million won to 100 million won, easing the burden of property insurance premiums. As a result, the insurance premiums for 3.33 million regional subscriber households will be reduced by an average of about 25,000 won per month.

On the 5th, the People Power Party and the government held a party-government consultation meeting at the National Assembly to discuss improvements to health insurance premiums.

With this revision of health insurance premiums, the premiums for 3.33 million regional subscriber households will be reduced by an average of 25,000 won per month, or about 300,000 won annually. Currently, for regional subscribers, the deductible amount for insurance premiums on property will be increased from 50 million won to 100 million won, easing the burden of property insurance premiums. Health insurance premiums imposed on automobiles valued over 40 million won will also be abolished.

[Image source=Yonhap News]

This health insurance premium improvement plan is expected to be applied from the insurance premiums for February of this year at the earliest, following the revision of the enforcement decree.

The party and government expect that this reduction measure will reduce the annual insurance premium burden by 983.1 billion won. It is known that the necessary funds will be procured through efficiency improvements in health insurance expenditures. The government has previously stated its intention to address the issue of increased health insurance premiums when workplace subscribers retire. It was necessary to correct the problem where insurance premium burdens were felt due to owned houses despite reduced income from retirement, etc.

Yu Ui-dong, the policy chief of the People Power Party, introduced the purpose of this reform, saying, "The party and government have decided to reduce the proportion of insurance premiums imposed on property and automobiles in health insurance to enhance fairness and equity between workplace subscribers and regional subscribers." Yu explained, "While health insurance workplace subscribers are charged premiums based on income, regional subscribers are charged premiums not only on income but also on property and automobiles. Although this was considered due to difficulties in assessing the income of regional subscribers, there are many opinions that improvement is needed now as the income assessment rate has increased."

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