J Korean Med Assoc.  2011 Dec;54(12):1306-1318. 10.5124/jkma.2011.54.12.1306.

The late Prof. Byung Yik Kim's suggestions on financial stability of the Korea's national health insurance in 2001 and 2002: what is changed in 10 years?

• Lee KS
• Ahn BR

• KMID: 2064782
• DOI: http://doi.org/10.5124/jkma.2011.54.12.1306

Abstract

The late Professor Byung Yik Kim published an analysis of the financial crisis of Korea's National Health Insurance (NHI) in 2001, which derived from the introduction of the separation of prescribing and dispensing. Subsequently, Kim published another paper on policy suggestions to achieve financial stability of the national health insurance in 2002. In his paper of 2001, he had analyzed two causes of the crisis. First, the stepwise integration of health insurance funds had brought about financial instability since 1998, when regional health insurance funds were integrated into one fund. Second, the introduction of the separation of prescribing and dispensing without recognition of financial instability led to financial crisis. In his 2002 paper, he proposed several policy recommendations, including postpone of financial integration among insurance funds, increasing government subsidies, introducing new financing sources for health insurance, such as an alcohol tax, and implementing cost-containment policies. This paper reviews what was changed in accordance with his policy suggestions over the past 10 years. Many policymakers agreed with his analysis on the causes of financial crisis, however, they did not accept his policy recommendations. Consequently, the Korea National Health Insurance is still financially unstable.

Keyword

Financial crisis; Financial integration; Separation of prescribing and dispensing

MeSH Terms

Financial Management
Financing, Government
Insurance
Insurance, Health
Korea
National Health Programs
Taxes

Reference

1. Kim DS. 'May bankruptcy' crisis of health insurance. 2001. 03. 09. Chosunilbo.

2. Kim BY. Inje University Graduate School of Public Health. Financial crisis of health insurance: what is the cause? Seminar on the causes and suggestions about the health insurance financial crisis. 2001. 2001 April 20; Seoul, Korea. 1–19.

3. Kim YI. The necessity and alternative of integrated & unified health care security system. 1994. Seoul: Administrative Renovation Commission.

4. Kim YI, Moon OR. Desirable system for management of the health insurance association. Hangyoreh Forum. Hangyoreh Newspaper. 1994. 11. 18.

5. Kim YI. The root causes of corruption in the medicines [Internet]. 1998. cited 2011 Dec 1. Seoul: People's Solidarity for Participation Democracy;Available from: http://info.peoplepower21.org/pub-html/725.html.

6. Jung SW, Lee TJ, Cho BH. Market competition structure after original drug patent expiry. Korean J Health Econ Policy. 2008. 14:1–25.

7. Kim BY. Financial soundness of the health insurance. Health & Welfare Forum. Policy forum on the health insurance normalization plan for advanced health care. 2002. 2002 Sep 6; Seoul, Korea. 99–138.

8. Choi BH. Evaluation on the financial crisis of the national health insurance. Korean Soc Secur Stud. 2002. 18:37–66.

9. Jeong WJ. A study of insurance reimbursement fees related to the separation of prescribing and dispensing. 1998. Seoul: Korea Institute for Health and Social Affairs.

10. Kim BY. Financial bankruptcy of health insurance in Korea. Bogeongyeongjeyeongu. 2002. 8:153–182.

11. Press release [internet]. Ministry of Health & Welfare. 2010.11.15, 2011.11.22. Seoul: Available from: http://www.mw.go.kr/front/al/sal0301vw.jsp?PAR_MENU_ID=04&MENU_ID=0403&CONT_SEQ=260540&page=3.

12. National Health Insurance Cooperaton. Major statistics of national health Insurance 2009. 2010. Seoul: Segwang Press;29.

13. National Health Insurance Cooperaton Homepage. Available from: http://www.nhic.or.kr/english/insurance/insurance04.html.

14. Lee KS. Financing and delivering health care. 2002. Seoul: Gyechuk Cultural Press.

15. Jones RS. Health care reform in Korea: OECD Economics Department working papers no. 797 [Internet]. 2010. cited 2011 Nov 17. Paris: OECD Publishing;Available from: http://www.oecd-ilibrary.org/economics/health-care-reform-in-korea_5kmbhk53x7nt-en.

16. Lee YJ. Equity in health care utilization by health status. Korea Soc Policy Rev. 2010. 17:267–290.

17. National Health Insurance Corporation. An analysis of health insurance benefits to contributions in 2010. 2011. Seoul: National Health Insurance Corporation.