Government toughens health insurance rules on foreigners

By Kang Seung-woo

Foreigners must stay in Korea for at least six months if they want to benefit from the state-run healthcare system, the government said, Thursday.

The measure comes as more foreigners and overseas Koreans visit here temporarily to receive expensive medical services at lower prices thanks to the public insurance, and return home after in a case of what the government calls a “moral hazard.”

“If foreigners want to be subject to the National Health Insurance Service (NHIS), they have to stay in Korea for more than six months,” an official of the Ministry of Health and Welfare said.

In addition, the government will make the NHIS subscription mandatory for those who meet the “length of stay” requirement.

It is expected to take effect in the second half of the year.

Currently, foreigners can sign up for the NHIS after spending three months here, which had been optional.

“The current requirements of voluntary enrollment and relatively short period of stay have led to cases of moral hazard as they stayed here for a short term and signed up for it at lower premiums before undergoing high-priced medical treatments and withdrawing from the program,” the ministry official said.

The ministry also said the compulsory service will be much more helpful for foreigners as those who were not covered by the public insurance had trouble receiving medical services when needed.

Under the current system, foreigners who are under the national healthcare system without employment at Korean firms pay a monthly premium of 100,000 won, but this is far lower than many salaried workers in Korea whose monthly wage is paid after the government takes their income- and wealth-based monthly premium, drawing backlash from local subscribers. Foreigners hired by Korean firms subscribe to the same program as salaried Koreans.

Last year's National Assembly audit of the health ministry found that the deficit of the state-run health program for foreign subscribers stood at 662.4 billion won ($620 million) between 2012 and 2017.

According to the ministry, foreigners who fail to pay premiums will face tougher punishment after the government came under fire for lacking effective ways to collect the money.

“Those who fail to pay premiums will have disadvantages when they extend their stay in Korea and return here,” the official said.

Korean salaried workers are automatically subscribed to an employer-sponsored plan, and failure to pay the state-set premium results in a freeze of personal assets, almost always preceded by reduction of monthly wages in the corresponding amount of unpaid premiums.