Health insurance chief calls for overhaul to make premiums reflect income more precisely

South Korea’s National Health Insurance Service should rely less on government support and instead overhaul how it assesses and charges premiums, its new chairman said at his first news conference. Kang Chung-hee said the system needed to identify income more precisely so that contributions could be imposed more fairly among subscribers.

“We should solve health insurance revenue problems through reform of the premium assessment system, rather than depending on government subsidies,” Kang said. He added that little progress had been made in collection over the past 25 years and that the agency would work to improve the system through more precise income assessment. Kang became the agency’s 11th chairman on July 20.

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We should solve health insurance revenue problems through reform of the premium assessment system, rather than depending on government subsidies.

The government is reviewing measures that would lower the income-exemption threshold for interest, dividend and rental income earned outside an employee subscriber’s salary from 20 million won to 10 million won. The proposals also include raising the premium ceiling for the highest earners and gradually increasing minimum premiums for low-income groups.

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The special judicial police system is not intended to suppress providers, but to allow a public institution to use its capabilities against institutions that violate the law and defraud health insurance finances, so that people can receive safe care.

The agency has also been preparing to introduce special judicial police powers to strengthen investigations into illegally established medical institutions, including so-called manager-run hospitals and pharmacies operating through borrowed licenses. It expects direct investigations to shorten cases and improve collection. Concerns have emerged, however, that the abolition of prosecutors’ investigative direction authority under a recent Criminal Procedure Act amendment could weaken external oversight.

Kang said the system would include safeguards against overreach and protections for human rights. “The special judicial police system is not intended to suppress providers,” he said. “It is a system that allows a public institution to use its capabilities against institutions that violate the law and defraud health insurance finances, so that people can receive safe care.” He also announced plans for an AI-based health and welfare platform linking prevention, health management, medical services and care across people’s lifetimes.

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From now on, we will establish a life-cycle health coverage system that goes beyond treatment-centered coverage and connects prevention, health management, medical care and care services.