By Lee Kyung-min
The government will expand its state welfare subsidy program for some 890,000 people in the lowest income bracket beginning next year.
The Ministry of Health and Welfare unveiled a three-year (2018-2020) comprehensive welfare program Thursday to better protect the most vulnerable including the elderly and children.
The overhaul measure is part of President Moon Jae-in’s drive to better protect those who have been neglected thus far, increase access to quality welfare services and root out welfare fraud.
The ministry said up to 2.52 million people (1.61 million households) will be eligible to receive the welfare subsidy, up 890,000 from the current 1.63 million.
A total of 4.8 percent will be eligible for the basic welfare program, up 1.6 percent from the current 3.2 percent. Under the basic welfare program, households earning less than 30 percent of the median income are given a monthly state subsidy. The amount is calculated based on the number of family members and whether they are on other state support programs.
Under the plan, the ministry will gradually revise the law that disqualifies people, whose immediate family members have stable income or property, from receiving the welfare subsidy.
The law has long been criticized for impoverishing the elderly aged over 65, as most of them have to depend heavily on their adult children, who are often reluctant to support their old and financially bereft parents.
The ministry will help about 930,000 such elderly with daily expenses, housing and medical expenses over the next three years. The ministry seeks to cut the number of the elderly living in poverty by up to 65 percent.
The ministry will also expand medical cost coverage for children and the elderly.
Out of those who earn less than 40 percent of the median income eligible to receive the medical support program, parents of children aged between six and 15 will pay only 3 percent of the medical cost, down 7 percentage points from the current 10 percent.
The government will cover up to 95 percent of teeth implant fees for the elderly. Under the current system they have to pay at least 20 percent of the total cost. Additionally, it will cover up to 95 percent of treatment cost for severe dementia patients.
The government will create 57,000 jobs which only low income earners are eligible for, up from the current 50,000. The number of companies that hire such people will also increase to 1,800, from the current 1,200.
The government will cut income tax on university students who work part-time jobs. Those aged below 35 in the lowest income bracket will be offered financial support.
The ministry will increase monitoring of high income earners or people with expensive property who avoid paying health insurance premiums. Many of them do so by registering as dependents of their sons and daughters who are salaried workers.