NHI turns to deficit with a mere 2.6% coverage improvement

Criticism rises over incentives to be awarded across NHIS

Mooncare criticized as one of the ‘100 top problematic projects of the fiscal year 2021’ by the People Power Party

With the new government preparing for complete reorganization and faceoff of the national health insurance coverage enhancement project ‘Moon Jae-In Care,' the ruling party criticized that Mooncare's implementation turned the current NHI balance into a deficit while raising the coverage rate by only a mere 2.6% points.

 

Also, the party criticized that the National Health Insurance Service has planned incentives across all NHIS employees despite the 2.9% rise in health insurance premiums borne by the public and that the national subsidy rate of NHI general accounts does not meet the statutory standards.

 

The ruling party requested disciplinary action against the National Health Insurance project managers under the Ministry of Health and Welfare and urged the NHIS to withdraw or return the incentives planned or paid to its employees.

 

The People Power Party’s policy committee criticized as above while presenting the ‘Top 100 issue projects of the fiscal year 2021’ on the 25th.

 

The People Power Party pointed out that the current NHI balance turned to a deficit from 2018 due to the government’s coverage enhancement policy while the coverage rate rose by only 2.6%p until 2020 compared to 2017.

 

The NHI expenditures had increased from ₩4.7 trillion in 2017 to ₩5 trillion in 2018, then surged to ₩8.6 trillion in 2019, and the accumulated reserves of NHI finances that had reached ₩20.8 trillion in 2017 turned to a deficit in 2018 and continued on its decline.

 

In particular, the People Power Party criticized that the previous government was unable to reach the 70% coverage rate it had aimed to achieve by 2022.

 

The NHI coverage rate had increased from 62.7% to only 65.3% by 2020.

 

In addition, the public’s national health insurance premium had increased by 2.9% on average every year except for 2017.

 

Also, Moon administration’s national subsidy rate for NHI general accounts did not meet the statuary standards.

 

The party also pointed to the Board of Audit and Inspection’s audit results of the NHI fiscal management status that showed that ₩250 billion’s worth of precious tax money had been wasted.

 

The BAI had reported that the MOHW had excessively paid out loss compensations after implementing a loss compensation plan worth a total of ₩190.7 billion in anticipation of a decrease in medical treatment revenue arising from the reimbursement of 11 items including epigastric ultrasound and brain MRI.

 

Due to the overpayment of loss compensations, a total of ₩90 billion had been paid out as loss compensation from 2018 to December 2021, ₩160.6 billion of which is suspected to be in violation of standards because a compliance check was not carried out due to NHIS's inadequate computerized system.

 

Therefore, the People Power Party pressed for an improvement of the system, pointing out how the NHIS, which turned the NHI balance into a deficit and wasted the taxpayers' money due to negligent management and supervision, is planning a performance-based incentive for all its employees.

 

Specifically, the NHIS had completed an internal review to pay out ₩29,084,898,000 in employee incentives.

 

17,010 employees will be receiving the incentives in September.

 

The NHIS President will be receiving ₩59,298,000 and the Standing Auditor ₩38,232,000.

 

The rate of incentive payment was set at 40.5% of the basic annual salary for the President and Executive Directors, 38.25% for the Standing Auditor, and 67.5% for its employees.

 

In addition, the ruling party criticized that the NHIS had not prepared any measures despite the imminent depletion of NHI reserves that is expected by 2025, is negligent about the long-term financial prospect, and is obstructing the National Assembly’s long-term fiscal outlook.

 

The party's remedial plan states, “We ask the government to discipline the health insurance project manager of the MOHW and the NHIS that infringed the National Assembly's right to review the NHI accounts.

 

Also, the NHIS should immediately withdraw or return the incentives planned or paid to its employees.

 

Also, a long-term fiscal forecast of over 40 years needs to be made to accurately disclose the reality of the increased burden that will be borne by the public in the future.

 

In particular, the NHIS should cooperate and submit data for the National Assembly Budget Office's long-term fiscal forecast." “The NHIS President, who was appointed near the end of the last administration at the end of December 2021, had not even established a countermeasure for the deficit in health insurance that was made when Moon’s administration took office.

 

The NHIS is holding a party amongst themselves after increasing public burden by raising the NHI premium rate in this economic crisis in the midst of COVID-19.”