Proposed Standard for Animal Medical Expenses Faces Scrutiny
South Korea isโค considering a standardized system for animalโฃ medical expenses following the creation of a “recommendedโข standard for animal care” which catalogs 3,511 diseases and 4,930 medical treatments,including schematic procedures โfor 100 common conditions. This initiative stems from a mandate (Article 20-3) requiring notification of standardized classifications for animal care, including disease names and treatments.
Representativeโข Lee Soo-jin has proposed that the Minister of agriculture and Foodโค determine an upper limit for these standard medical expenses. The โproposal stipulates that setting this โคlimit must consider animal hospital operating costs and the price of โขanimal drugs, with consultation involving the Korean Veterinary Medical Association, animal protection groups, and consumer organizations. The specific calculation method โand consultation process woudl be detailed in a Presidential Decree, with annual reviews and adjustments to the upper limit planned.
the aim, according to Representativeโข Lee Soo-jin,โค is to possibly increase pet insurance coverage rates by easing the financial burden of veterinary care for pet owners.
However, the proposed system is drawingโ criticism for focusing solely on an upper limit, โคwithout establishing a โlowerโฃ priceโ threshold. Experts โขpoint toโข Germany as the only other nation with โa system for regulating animal medical expenses, but note that Germany’s approach includes both โฃminimum and maximum price points โfor procedures, โฃaiming to prevent price wars โand a decline inโค service โquality.
Concerns have been raised that setting only an upper โlimit could lead to “price bleeding competition” and downward leveling of โfees, ultimately harming the quality of care. Critics argue that without a lower limit, veterinary hospitals might potentially be forcedโค to cut corners to โremain competitive within the established upper bound.
Moreover, โthere are questions about the practicality of defining “standard” medical expenses if services can fall below a certain quality threshold. Setting the upper limit toโข low could discourage hospitals from offering advanced services, while setting it too high may negate the intended benefit of โreducing financialโฃ burden on pet owners.
The โขKorea Social โFuture Policy Vice-Chairman, Woo Yeon-chul, acknowledged the need for a numbering system given the current lack ofโข transparency in animal healthcare pricing.โข However, the articleโค highlights the potential for negative consequences for veterinary clinics unless a comprehensive system, similar to human health insurance, is implemented to protect their financial viability. The proposal, as it stands, is seen as potentially โฃreducing income for veterinary โclinics without aโ corresponding systemic support structure.