South Korea's Emergency Medical Cost Program Faces 19 Billion Won in Losses Over 5 Years | Be Korea-savvy

South Korea’s Emergency Medical Cost Program Faces 19 Billion Won in Losses Over 5 Years


The South Korean government's initiative to cover emergency medical costs for patients unable to pay has resulted in significant financial losses. (Image courtesy of Yonhap)

The South Korean government’s initiative to cover emergency medical costs for patients unable to pay has resulted in significant financial losses. (Image courtesy of Yonhap)

SEOUL, Aug. 6 (Korea Bizwire) – The South Korean government’s initiative to cover emergency medical costs for patients unable to pay has resulted in significant financial losses, according to a recent report.

Data released by the Ministry of Health and Welfare shows that over the past five and a half years, the government has been unable to recoup nearly 19 billion won in emergency medical expenses it paid on behalf of patients. 

Representative Kim Mi-ae of the People Power Party, a member of the National Assembly’s Health and Welfare Committee, revealed that between 2019 and the first half of 2024, the government advanced payment for 29,987 cases of emergency medical care, totaling 40.76 billion won. However, the recovery rate for these payments has been notably low. 

During this period, only 16,440 cases, amounting to 5.49 billion won, were reimbursed. A substantial 15,451 cases, worth 18.9 billion won, were ultimately written off as losses. The Ministry of Health and Welfare calculates these losses based on the date of final approval for write-offs.

The emergency medical cost advance payment system, implemented by the government, aims to ensure that patients receive timely emergency care regardless of their immediate ability to pay.

Under this system, the state temporarily covers the medical costs for patients facing financial difficulties, with the expectation of later reimbursement from the patients or their guardians. 

The annual breakdown of advance payments shows fluctuations, with a peak in 2022 at 11.56 billion won for 6,977 cases. Correspondingly, the highest annual loss was recorded in the same year, reaching 8.22 billion won for 4,821 cases. 

Representative Kim emphasized the need for a balanced approach.

“While there should be policy considerations for socially vulnerable individuals who cannot afford to pay medical bills in emergency situations, we must also respond strictly to those who intentionally exploit the system,” she stated.

Kim suggested strengthening application criteria and improving regulations to enhance the program’s effectiveness.

M. H. Lee (mhlee@koreabizwire.com) 

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