Wednesday, December 13, 2017

Korea wants insurers to cut medical indemnity premiums

The Korean government is considering legislation that will pressure private insurers to reduce premiums for their medical indemnity insurance.

The move is part of the government’s efforts to help alleviate the cost burden on subscribers amid its coverage expansion of national health insurance.

According to a presidential policy panel, the legislation will justify the alignment between public and private health insurance plans to reduce expensive medical indemnity insurance premiums.

Insurance companies that massively raised medical indemnity insurance premiums in the past two years will need to adjust their premium increase, according to Park Kwang-on, spokesman of the State Affairs Planning Advisory Committee.

Park said a consultative body for public and private insurance schemes will soon be formed for opening up discussions. The insurance industry has expressed its opposition to the plan, saying the plan is one-sided and not based on facts.

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