Amid continuing controversy over overtreatment at Korean medicine hospitals, the average treatment cost per minor-injury patient at such hospitals rose about 26.5% over the past five years.
According to the insurance industry on the 2nd, the average treatment cost per minor-injury auto insurance patient at four major non-life insurers (Samsung, Hyundai, KB, DB) at Western medicine hospitals in 2025 was 355,000 won, up about 5.0% from 2020 (338,000 won). In contrast, Korean medicine hospitals rose from 856,000 won to 1,083,000 won over the same period, up 26.5%.
The insurance industry points to "set billing" and "higher-grade room charges" as reasons why per-patient costs are higher at Korean medicine hospitals.
They say some Korean medicine hospitals are engaging in so-called set billing by performing six or more procedures together regardless of the patient's symptoms.
In 2025, set-billed medical costs for minor-injury patients at Korean medicine hospitals (for outpatient treatment) totaled 253.4 billion won, rising an average of 30.3% per year from 2020 (67.5 billion won). That exceeds the growth in set-billed costs for moderate-to-severe patients (grades 1–11) at 21.6%. Over the same period, set-billed costs for minor-injury patients at Korean medicine clinics rose 10.1%, and for moderate-to-severe patients, 3.5%.
Even so, rules that could restrict set billing, such as auto insurance fee schedules, remain inadequate.
Higher-grade room charges at Korean medicine hospitals are also cited as a factor driving up treatment costs.
In 2025, room charges for 1–3 bed rooms at Korean medicine hospitals were 32.01 billion won, increasing an average of 26.1% per year from 2021 (12.67 billion won). During the same period, Western medicine hospitals' 1–3 bed room charges actually fell 13.7%.
In principle, auto insurance covers room charges for rooms with four or more beds, and recognizes 1–3 bed room charges only in exceptional cases.
The insurance industry believes some hospitals, aligning with tightened review standards for medical costs, operate only 1–3 bed rooms while making it appear they operate four-bed rooms to bill higher-grade room charges.
To prevent overtreatment, the government on the 30th put on the agenda at the Vice Minister meeting a revision to the Enforcement Decree of the Automobile Compensation Guarantee Act, the so-called "8-week rule," which requires verification of the need for long-term treatment exceeding eight weeks. The revision will be finalized after going through the Vice Minister meeting and the Cabinet meeting
An insurance industry official said, "While promptly implementing the 8-week rule revision, we should also specify the auto insurance fee schedule standards and strengthen the Health Insurance Review & Assessment Service (HIRA)'s review of medical costs."