The South Korean government will raise the premium for national health insurance by 3.2 percent next year, slightly off 3.49 percent increase in this year amid opposition from subscribers.

The Ministry of Health and Welfare announced Thursday that it will raise health insurance premium by 3.2 percent in 2020, which would result in deduction of 6.67 percent off monthly salary check for workers on employers-subsidized program compared to current 6.46 percent. Those unsubsidized by employers should pay 195.8 won per insurance point calculated based on income level, up from 189.7 won this year.

The average monthly premium for corporate workers is expected to increase from 112,365 won ($92.53) as of March this year to 116,018 won next year, and from 87,067 won to 89,867 won for individually insured people.

The health ministry set the increase in premium rate slightly lower than its original plan of 3.49 percent hike due to the protest from health insurance subscribers unit arguing the government should expand its subsidy first before raising the premium rate. The ministry originally planned to raise the premium by 3.49 percent from 2020 to 2022 and 3.2 percent in 2023 in its first comprehensive plan on national health insurance.

Amid the strong opposition, the government pledged to increase its subsidy for health insurance to more than 14 percent and revise the National Health Insurance Act to secure stable state support.

Under the Health Promotion Act, the government should support 20 percent of the projected health insurance reserve for the year – 14 percent from state coffers and 6 percent from the national health promotion fund raised by cigarette tax, but it has failed to provide the full amount of subsidy since the act took effect in 2007. According to the National Assembly, the state subsidy for the insurance amounted to just 15.3 percent and the unpaid balance totaled 24.5 trillion won over the period.

By Yeon Gyu-wook and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]