Health Insurance Faces Looming 44.6 Trillion Won Shortfall, Report Warns
SEOUL, SOUTH KOREA – South korea’s national health insurance system is projected to face a critically important financial deficit, with expenditures expected to outpace income by 44.6 trillion won annually, according to a new report by researchers Lee Young-sook, Go Sook-ja, ordination, Lee Seung-yong, Yoo Hee-soo, and Park Seung-jun. the study, titled ‘social Security Long Fiscal Fiscal Model Establishment,’ forecasts total health insurance expenditure reaching 296.4 trillion won, while total income is expected to be 251.8 trillion won.
The report highlights that even with health insurance premiums raised to the legal maximum of 8%, revenue will be insufficient to cover escalating medical costs. researchers attribute the looming shortfall primarily to South Korea’s rapidly aging population.
As of 2023, individuals aged 65 and older – representing 17.9% of all subscribers – accounted for 44.9 trillion won, or 44%, of total medical expenses. This burden is expected to intensify as the baby boomer generation (born 1955-1963) enters the elderly demographic, further increasing medical demand.
The researchers utilized a “bottom-up” model,examining individual income and expenditure items,to account for demographic shifts,advancements in medical technology,and rising incomes. Experts warn that simply increasing premiums will not ensure the long-term sustainability of the health insurance system and urge urgent discussion of essential reforms, including restructuring spending and innovating the medical supply system. Delaying action, they caution, will place an undue burden on future generations.
