Analysis on the National Healthcare System in South Korea

This paper explores the national health care system in South Korea. Main aspects covered in this paper are the people covered in the health care system, methods of funding, utilization of the system by the patients, management of doctors and institutions that work under the system, and South Korea’s standing in terms of health care results around the world. The paper scrutinizes the National Health Insurance program which is the core system that strives to provide Universal healthcare to all its’ citizens and people residing in the country. Funds used for the NHI are mainly self-provided by the contributors benefiting from the NHI with the assistance of tobacco surcharges. The NHI utilizes a Copayment system to regulate the rate of coverage provided to the insured based on their inpatient or outpatient state. The MIHWFA(Ministry of Health, Welfare and Family Affairs) works with the local government to provide local clinics and health centers to the public and regulates doctors, nurses, and other practitioners in the medical field by mandating certifications in order to practice medical skills. Over the span of 12 years South Korea has elevated its’ standing in terms of Healthcare results in comparison to other OECD countries. South Korea has maintained a relatively low health expenditure rate in terms of GPA while providing clear and broad data through the centralized and mandated system under the NHI. As a result, South Korea has seen an average to higher life expectancy compared to other global OECD countries with relatively minor costs. Studies used as reference are mainly studies conducted inside the country and provide clear insight on the formation and operation of the health care system in South Korea.

Key words: NHI(National Health Insurance), Universal Coverage, Health Insurance,

Single-player, Copayment

Analysis on the National Healthcare System in South Korea

 Health care is one of the most essential social infrastructures that help establish a country and benefit the people. Various countries around the world have different forms of health care that operate in differently. South Korea with a population of around 51 million people implements a single-player system under the National Health Insurance Program to provide mandatory universal health care to citizens in the country. Also extending to provide healthcare to foreigners working inside the country.

Healthcare Coverage in South Korea

South Korea has put a strong effort into providing universal health care to all its’ citizens. The first health insurance law, the Medical Insurance Act was established on December of 1963. (Song, 2009) After this law was passed within the span of 12 years South Korea went from it first issued health insurance law to universal coverage for everyone in the country. Initially health care was provided through multiple insurance societies that provided coverage for employees and the self-employed separately. However, in the year 2000 all insurance societies were united into one integrated system that covered everyone in the country. This was achieved thanks to the establishment of The National Health Insurance Program, which is the core of the nation’s source in providing health insurance. Every person living in South Korea is eligible for medical insurance, regardless of nationality or profession. Foreigners living in South Korea who are registered with the National Health Insurance Corporation receive the same medical benefits and services as Korean nationals. As a result, the total number of people covered under the insurance program reached 47 million people, over 96.3% of the total population with the remainder of 3.7% were supported Medical Aid Program. Insurance provided by the NHI are divided into sectors the “employee” and the “self-employed” the “employee insurance” is a family-based insurance as the program covers the insured person’s spouse, descendants, brothers or sisters, and direct lineal ascendants. (Song, 2009) On the other hand “self-employed” are the people that are excluded from the “insured employee”. As a result, Health care is a mandatory requirement in the country both for residing citizens and foreigners working inside the country. (Citizens living abroad are required to reside in Korea for at least three months before applying for the program)

Healthcare Funding System in South Korea

The Healthcare system mainly operated by the NHI(National Health Insurance) is funded through the contribution of the insured, the government subsidies and tobacco taxation.

Contribution of the Insured

The first and major source of the funding for the healthcare system is the payment made by those who are insured. Divided into the employees wh