National health insurance in the black in 2011

The Ministry of Health and Welfare said Thursday that the national health insurance fund was 600.8 billion won ($521 million) in the black last year and had 1.56 trillion won in reserves.

The National Health Insurance Corp. collected 37.9 trillion won in premiums and spent 37.3 trillion won on insurance coverage.

Fund revenue increased by 15 percent due to the 5.9 percent premium raise last year, while insurance coverage rose just 7.4 percent compared to the previous year.

Insurance payouts decreased the most for drug coverage since the government cracked down on the illegal rebates practice, punishing both pharmaceutical companies and doctors engaged in irregularities. Drug insurance claims are expected to keep falling this year as the ministry announced an average 14 percent price cut for non-patent drugs.

“The insurance fund was 1.3 trillion won in red at the end of 2010. Even though the government seeks to expand insurance coverage this year, the fund will try to keep surplus through the tightening of its budget,” a ministry official said.


By Bae Ji-sook
(baejisook@heraldcorp.com)