The National Health Insurance Service (NHIS) said Monday that the health insurance deficit sharply declined last year, as people maintained hygiene practice for fear of Covid-19 infection, leading to fewer hospital visits. 

Last year’s deficit fell to 353 billion won ($321 million) from 2.82 trillion recorded in 2019.

According to state health insurance, the steep decline in the deficit was due to a significantly reduced number of patients visiting medical institutions with respiratory and infectious diseases.

The number of patients with cold decreased by 47 percent, flu by 97.4 percent, and pneumonia by 63.6 percent in 2020, reducing the overall respiratory illness by 48.1 percent compared with the previous year. Bacterial infection, eye inflammation and otitis media also decreased by 18.8 percent last year.

NHIS collected 73.4 trillion won in health insurance premium in 2020, increasing 7.9 percent from 2019. The growth rate slowed from the 9.6 percent rise recorded in the previous year. 

The state insurer spent 73.7 trillion, with accumulated reserve funds amounting to 17.4 trillion.

NHIS explained that the health insurance premiums were imposed based on the income of 2019 and 2018 before the Covid-19 hit the nation, and were less affected by infectious diseases. However, the growth was reduced due to reduced insurance premiums and lower collection rates.

“We plan to consult with the fiscal authorities and continue expanding government aid to ease subscribers' burden,” an NHIS spokesperson said. “We will manage our budget to respond to abnormal signs by closely monitoring the income and expenditure status,”