Next year, health insurance premiums will increase for the first time in three years. The health insurance premium rate (the percentage of income collected for health insurance) will rise from 7.09% this year to 7.19% next year, an increase of 0.1 percentage points.
On the 28th, the Ministry of Health and Welfare held a meeting of the Health Insurance Policy Deliberation Committee and announced that it decided to raise the health insurance premium rate by 1.48% compared to the previous year. The government has decided on the increase and the magnitude of the health insurance premium rate for the following year at the end of August each year. Last year and this year, it was frozen consecutively.
Currently, employees who are enrolled in health insurance contribute 7.09% of their income, which is shared equally with their company. Local subscribers pay an additional premium based on 7.09% of their income, reflecting their assets. As a result of this increase, the average monthly premium for employees will rise from 158,464 won this year to 160,699 won next year, an increase of 2,235 won. The annual average will rise by 26,820 won. The average monthly premium for local subscribers will increase from 88,962 won this year to 90,242 won next year, an increase of 1,280 won.
The increase in health insurance premiums was anticipated. The number of people paying premiums is decreasing due to low birth rates and an aging population, while medical expenditure is rising. Previously, the Ministry of Health and Welfare reported a proposed increase of around 2% to the Presidential Committee on Policy Planning. Given the economic burden on citizens in the era of high inflation, the actual increase was decided to be lower than that.
The Ministry of Health and Welfare noted that "the freezing of premium rates and low growth have weakened the income base of health insurance," and stated, "We will manage the financial leakage factors that cause unnecessary medical expenditure and enhance financial stability."