Governing Camp Scraps Plan for Supplementary Health Insurance
By Kim Sue-young
Staff Reporter
The government and the governing Grand National Party (GNP) decided not to adopt a system to supplement national health insurance, a party official said Sunday.
The supplementary plan was considered by some as a runner-up to the privatization of the compulsory health insurance. The system, dubbed ``private health insurance service,'' was to reimburse about 40 percent of medical expenses, like the French healthcare system.
``People thought that the adoption of a privately-run health insurance service aimed at fully privatizing state health insurance. So, we decided not to proceed with the project,'' said the official asking to remain anonymous.
The ruling camp postponed plans to submit revisions of medical laws, which were also regarded as a move to privatize the health insurance.
Since President Lee Myung-bak vowed to privatize public firms and allow private health insurance, an increasing number of people have urged him to scrap the plan, claiming it would threaten the low-income bracket with expensive insurance bill.
The Ministry of Strategy and Finance had said it would seek to strengthen the nation's competitiveness by allowing private insurance and lifting the ban on the establishment of profit-making hospitals.
However, citizens and some experts expressed concern that privatization of the compulsory insurance may double the burdens on subscribers.
They also pointed out that the privately-run insurance service can force the people to pay an additional premium to enable them to receive medical treatment at certain hospitals affiliated with profit-making medical institutions.
As for the delay in revising the medical laws, Rep. Ahn Hong-joon, chairman of a committee on policy coordination of the GNP, said the government and his party have yet to fully review it and thus, postponement is necessary.
The government and its party plan to hold public hearings on medical issues soon.