Former President Moon Jae-in’s policy to enhance health insurance coverage, called Moon Jae-in care or “Moon Care,” has become a bone of contention in the political community.
The controversy surfaced after the incumbent chief executive, Yoon Suk-yeol, declared to repeal his predecessor’s policy, describing it as “populism.” The opposition Democratic Party of Korea (DKP), with a parliamentary majority, reacted immediately, expressing concerns about “medical bill bombs.”
“Populist healthcare policies that waste taxpayers’ money will hurt the pillars of the health insurance policy by running the state underwriter’s finance and end up forcing people to make a great sacrifice,” Yoon said at a cabinet meeting Tuesday. “Reform of health insurance system is not a choice but a necessity.”
Yoon pointed out that the previous administration poured 20 trillion won ($15.3 billion) into expanding insurance coverage over the past five years.
“However, the burden has been passed on to most people as the government neglected medical abuse and free rides on health insurance,” he said. “We must strengthen health insurance benefits and eligibility standards and prevent the health insurance waste and leakage.”
He then vowed to provide ample support for those suffering from medical blind spots with saved financial resources.
“The gist of the health insurance system is to guarantee essential medical care that requires high costs, like severe diseases,” Yoon said. “We will enhance sustainability, treat severe diseases, and strengthen essential medical care.”
The DKP reacted angrily. Some used strong language, like “a silly thing.”
“Why is it a waste of taxpayers’ money that the government pays people’s medical bills?” said Rep. Yun Keon-young, a DKP lawmaker, at a KBS radio talk show. “In short, (they are) doing a silly thing (by trying to change health insurance).” Yun served as the chief of state affairs under the Moon administration.
Yun said the Moon Care was something no conservative governments had attempted. The previous government tried to reduce heavy medical bills for working families by expanding insurance coverage. However, President Yoon says he will narrow the scope of its beneficiaries, Yun added.
“In the end, the Yoon administration urges the people to take out private insurance more, like in the United States. It means only wealthy people can receive good healthcare services,” Yun said. “The overspending is only a fraction, and we must stop doing the stupid thing that shakes the whole health insurance system. It’s like cutting off your nose to spite your face.”
Rep. Choi Jae-seong, also of DPK, appeared on YTN’s radio show and said, “The criticism (of Moon Care) is populism itself. However, the state must expand insurance coverage and keep people from suffering from medical care. Therefore, we must also consider whether it is good to maintain the health insurance finance in the black-ink figure.”
In the first half of this year, health insurance’s medical payment totaled 50.08 trillion won, up 11.6 percent from 44.88 trillion won a year ago. As a result, the total is estimated to exceed 100 trillion won this year for the first time in history.
The swelling expenses also send an alarm signal to health insurance’s fiscal soundness.
According to the National Health Insurance Service, the state agency’s current-account balance will turn to a deficit from next year. Its reserve fund is also expected to fall from 20.2 trillion won in 2021 to 9.4 trillion won in 2026.