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South Korea expands health insurance income reconciliation
South Korea's health insurance service shifts to nationwide income reconciliation, adding $2.5 billion burden on 3.94 million households.
In brief
South Korea's health insurance service shifts to nationwide income reconciliation, adding $2.5 billion burden on 3.94 million households. South Korea's National Health Insurance Service will expand income reconciliation to cover 9.08 million households, adding $2.5 billion in premiums for 3.94 million households while…
National Health Insurance Service expands income reconciliation
South Korea's National Health Insurance Service plans to shift from subscriber applications to annual income reconciliation using National Tax Service data.
New system covers 9.08 million households
The measure will cover 9.08 million regional subscriber households and 1.1 million workplace subscribers with non-salary income.
3.94 million households pay $2.5 billion extra
3.94 million regional subscriber households would pay an additional 3.2911 trillion won ($2.5 billion) in premiums.
2.32 million households receive $1.4 billion refunds
2.32 million households would receive refunds totaling 1.8014 trillion won ($1.4 billion) from income declines.
Net fiscal gain of $1.1 billion
The net fiscal gain is estimated at 1.4897 trillion won ($1.1 billion), earmarked for regional medical care and severe disease coverage.
Ex officio reconciliation system
The system uses National Tax Service income data for annual ex officio reconciliation, eliminating selective reconciliation issues.
Households face potential sudden expenses
Households with rising incomes may face lump sums ranging from hundreds of thousands to millions of won in a single year.
The takeaway
South Korea's National Health Insurance Service will expand income reconciliation to cover 9.08 million households, adding $2.5 billion in premiums for 3.94 million households while refunding $1.4 billion to 2.32 million households.
