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| National Health Insurance Service (NHIS) President Kim Jong-dae speaks during a board meeting convened to decide on a compensation suit against tobacco companies at the insurance agency's main office in Yeomri-dong, Seoul, Friday. / Yonhap |
NHIS seeking up to W333 bil. damages, snubs gov't opposition
By Nam Hyun-woo
The National Health Insurance Service (NHIS) will file a damages suit against KT&G and other tobacco companies, seeking up to 333 billion won in damages.
This will be the nation's first compensation suit against cigarette makers brought by a public agency.
At a board meeting Friday, the NHIS decided to sue the companies for the 333 billion won in estimated costs related to treating smoking-related diseases.
The board members agreed to leave the decision on the timing of the suit to NHIS President Kim Jong-dae.
"All cigarette companies operational in Korea could be defendants," said an official. "The NHIS will file the suit as soon as possible," she added.
The amount was based on costs that the service has paid to treat small-cell and squamous carcinoma, which a local court ruled are caused by smoking, according to the NHIS.
The agency said that it will do its utmost to win the suit as an insurer of public health, and work with lawmakers to table a bill that will force cigarette companies to pay a certain amount of the treatment costs for patients suffering smoking-related diseases.
It has long said it will file a suit against KT&G, the largest cigarette-maker in Korea, and other tobacco companies to recover the costs of treating smoking-related diseases.
The decision was made amid the government's opposition to the NHIS's legal action. The Ministry of Health and Welfare opposes the suit, and requested a day earlier that the insurance body be "discreet" and not make any decision at the board meeting.
Of thirteen board members in attendance, eleven voted for and two against. The board is comprised of six NHIS officials, six civic group members and three government officials.
Kim wrote on his blog earlier that the ministry sent an official document to the NHIS to that effect, but the body would carry on with the board meeting.
The document reads: "The ministry understands the purpose of the NHIS filing the suit, but it wants the board not to vote on it and just discuss the agenda. Compared to overseas cases, the possibility of the NHIS winning is very low and the cost will be a financial burden to the body."
A ministry official also said that it was "premature" for the board to vote on the issue.
"The ministry believes that more study needs to be done on details, such as the insurance body's eligibility as a plaintiff, the amount to be sought as a litigation settlement and evidence proving tobacco companies' illegalities before the NHIS files the suit," he said.
The insurance firm has been studying the harm induced by smoking and gathering supporting evidence for a long time. "The suit is a due task for us as the insurer of national health," the NHIS official said.
Cigarette companies showed opposition to the NHIS move. The Korea Tabacco Association, whose members are tobacco makers in and outside the country, said in statement: "There is no illegality or fault in the commercial activities of cigarette makers. It should reconsider whether filing the suit is the best option it can make to settle its cash-strapped financial status."
A number of civic groups support the NHIS move.
The Citizens' Coalition for Economic Justice, a civic group dedicated to socioeconomic advocacy issues, said in a statement that, "Citizens are appalled at the ministry's lenient manner in dealing with the tobacco issue. For public health, the NHIS's tobacco suit should be filed without delay."
