The South Korean government postponed an announcement on higher national health insurance premiums amid concerns of backlash over rising household financial burdens.
According to a report by Korea JoongAng Daily, the government abruptly postponed the announcement of a planned health insurance premium hike, on Wednesday, amid concerns that raising another tax-like burden could fuel public backlash following proposed property tax changes and a recent stock market slump.
The announcement was originally scheduled for Thursday.
“Discussions on agenda items, such as a plan to reform National Health Insurance Service [NHIS] coverage, had been postponed to allow for broader consultation,” the Ministry of Health and Welfare told reporters.
The Health Ministry had planned to convene its health insurance policy deliberation committee on Thursday to unveil a package of reforms aimed at reducing medical expenses, along with changes to the health insurance premium system — notably higher minimum and maximum premium caps.
A draft proposal included raising premiums for salaried employees with nonwage income, such as interest, dividends, rental income and business earnings. The increase would come from a reduction in the deduction applied to such income.
The proposal also called for raising the monthly premium ceiling for the highest-income subscribers — the top 0.04% of workplace subscribers and the top 0.02% of regional subscribers — from KRW 4.59m ($3,200) to KRW 6.12m.
The Service would also gradually increase the minimum monthly premium for low-income workplace subscribers from KRW 10,080 to KRW 22,260, according to the proposal.