Health insurance revised for underprivileged
The government has revised the law on state insurance for low-income households for the first time in 18 years. Captured from the National Health Insurance Service's website
6 million households to pay 20% less beginning July
By Jung Da-min
Households that earn very little to no annual income will no longer face the burden of paying state health insurance premiums.
Beginning July, they will only have to pay 13,100 won ($12.26) a month or less depending on their financial status, according to the Ministry of Health and Welfare.
The government has revised the law on state insurance for low-income households for the first time in 18 years.
In the first phase of the revision, it will exempt individuals from low-income families from paying their regional health insurance based on age, sex, income, property and other assets.
The unemployed are forcibly subscribed to state health insurance administered and managed by their regional governments.
About 80 percent of the total regional subscribers will see insurance costs drop by 22,000 won on average. The current average premium is 92,000 won.
The government will make further revisions by July 2022, which will lower the financial burden on low-income households. Those from high-income brackets will have to pay more for insurance.
This comes after the tragic suicide in 2014 by a mother and her two adult daughters who faced a growing burden to pay rent and other required public expenses without receiving any state subsidy.
They had practically no income, while living in a small basement room. But they could not receive any state support or exemptions as the two daughters were older than 30 and had been classified as “able to work.”
They left a note with 700,000 won, saying they were sorry and this was all they had for rent and other bills. Their room's monthly rent cost 500,000 won.
Nearly 90 percent of those who failed to pay their state health insurance for more than six months had an annual income of less than 5 million won, according to the Citizens' Coalition for Economic Justice.
Under the first phase of the revision, the government will also remove their burden to pay insurance for vehicles such as trucks, delivery vans and small cars. Low-income households with mid-size cars used for more than nine years will see a 30 percent reduction.
Premiums charged to their properties will also be lowered.
No more free rides
Dependents will no longer be exempt from paying state health insurance should they earn more than 34 million won a year.
Previously, they did not have to pay a single penny even though they were earning an income. This is because they lived with an employed family member who paid insurance subtracted from their monthly salary.
About 360,000 dependents with income will need to start paying next month.
In particular, sibling from households with income will not be recognized as dependents, regardless of their income.
About 20 million people are classified as dependents as of last year, accounting for about 40 percent of the total state insurance subscribers.
By 2022, the number of those who will not be counted as dependents will increase from 360,000 to 590,000.