Key Takeaways:
- South Korea addresses ‘free rider’ issue in health insurance by tightening rules due to exploitation by foreigners.
- Measures include extended residency requirements and reduced eligibility, saving around 12.1 billion won annually in health expenses.
- New regulations impact foreigners seeking medical treatment, with key exemptions for specific categories of dependents.
In recent years, South Korea has been attracting international attention not only for its vibrant culture and booming tech industry but also for its comprehensive National Health Insurance Service (NHIS). However, this has led to the emergence of ‘free riders’ – individuals who exploit the system, specifically targeting foreigners seeking medical treatment. The government has responded by tightening health insurance rules, a significant move to protect the integrity of Korea’s health system.
What Led to the Change in South Korea Health Insurance?
The situation with Mr. A, a Chinese national in his 70s, illustrates the issue South Korea faces. Arriving in July 2020 to seek treatment for liver cancer, Mr. A registered with the NHIS as a dependent of a family member living in Korea. Throughout his year-long stay, he underwent 64 medical treatments, with the NHIS shouldering some $37,000 (50 million won) in costs. His departure back to China in July 2021 after completing his treatment epitomizes the ‘free rider’ problem.
Similarly, Mr. B, a Vietnamese in his 50s, took advantage of the system in 2020, costing the NHIS a total of 90 million won for treatments over a year, only to return to Vietnam afterward. These cases are not isolated, prompting the government to take decisive action.
How Is South Korea Tackling ‘Free Riders’ in National Health Insurance?
To address the exploitation of South Korea’s health insurance system by foreign ‘free riders,’ the government has made strategic adjustments to the criteria for National Health Insurance coverage. This reform comes in two main facets:
- Extended Residency Requirement: As part of the revised National Health Insurance Act effective from April 3, dependents of foreign nationals and Koreans living abroad are now required to reside in Korea for at least six months to qualify for health insurance coverage. This measure aims to curb immediate and short-term enrollment intended for intensive treatments.
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Reducing Eligibility: Foreigners living in Korea for less than six months will no longer qualify as dependents. This change is anticipated to decrease the number of foreigners receiving health benefits by about 10,000 annually.
As quoted by a government official, “This measure is expected to save around 12.1 billion won in health insurance expenses annually.”
Who Is Affected by These New Rules?
The new regulation provides exemptions to ensure it doesn’t unfairly penalize all foreigners or expatriates in need of healthcare services:
- Parents, siblings, and college-aged children of foreigners working with local companies must now wait six months before they can register as dependents.
- However, spouses and minors under 19, along with those holding residency statuses for marriage, permanent residency, or study reasons, can register as dependents upon arrival without delay, ensuring that families of diplomats and foreign company expatriates are not adversely affected.
Previously, immediate family members like in-laws could receive health benefits upon entry – a loophole that is now closed as of April 3, requiring a six-month residency before qualifying as dependents.
What Does This Mean for Foreign Nationals Seeking Medical Treatment in South Korea?
With approximately 1.46 million foreigners registered for national health insurance by the end of 2023, Chinese nationals taking up nearly half of this number, followed by Vietnam, Uzbekistan, and Nepal, the implications of these changes are significant. The majority of these foreigners were either regional enrollees or registered through employment, with dependents comprising the remainder.
For foreign nationals considering South Korea for medical treatment, it’s crucial to be aware of these changes. Planning ahead and understanding the eligibility requirements will help avoid unnecessary complications. Further information on the health insurance requirements for foreigners can be found on the National Health Insurance Service website.
The government’s goal is clear. As stated by an NHIS official, “The aim is to prevent a small number of foreigners from exploiting the system.” By tightening these rules, South Korea seeks to maintain the fairness and sustainability of its health insurance system, ensuring it remains robust for those who genuinely need and contribute to it.
This Article In A Nutshell:
South Korea tightens health insurance rules to combat ‘free riders,’ foreigners abusing the system for medical treatments. Changes include a six-month residency requirement for eligibility and reduced dependents’ coverage. The moves aim to save costs, ensuring fair access for those who genuinely need medical care in Korea.
— By VisaVerge.com
