Disputes grow over inconsistent policy on health insurance fees
By Korea HeraldPublished : Jan. 29, 2015 - 22:23
Controversy escalated on Thursday over the government’s inconsistent introduction of a new system to levy more health insurance fees on high earners.
Health Minister Moon Hyung-pyo told lawmakers Wednesday that he would not push ahead with the plan aimed at changing the way the government collects fees from health insurance subscribers this year.
The remark quickly raised speculation that the minister may have been under pressure from the presidential office to backpedal on the policy to avoid agitating taxpayers already upset with the recent tax increases.
Cheong Wa Dae, however, exacerbated the mess Thursday as it flatly denied the minister’s remark, saying that the government would consider introducing the new system. The ministry backtracked from the new health insurance policy entirely on Moon’s judgment, said presidential spokesman Min Kyung-wook.
“We believe that (the remark came from) the health minister’s own judgment that the government may need deeper discussion on the policy in order to form a social consensus,” he said.
The Park government has been seeking ways to implement a new system to fairly impose health insurance fees based on subscribers’ income levels.
The new policy on health insurance was to plug an obvious loophole in the system. Under the current payment system, some subscribers with similar incomes pay different health insurance fees and those who are registered as a dependent in a family are not obliged to pay the mandatory fees even if they hold massive amounts of assets.
The unfairness of the system sparked criticism when a mother and her two daughters committed suicide last year after suffering from financial difficulties. Because none of the family members were employed, they had to pay a monthly health insurance cost of 50,140 won, which was calculated based on their assets, even though other rich subscribers enjoy the same health service for free if they are registered as dependents.
The revision of the system was one of Park’s campaign pledges.
Minister Moon’s remark follows the harsh public criticism the Park administration faced over the government’s new tax settlement scheme. In the face of strong resistance, the government and the ruling Saenuri Party agreed to push for revision of the tax code to offer more tax refunds to eligible taxpayers.
The main opposition New Politics Alliance Democracy lashed out at the government for backtracking on its plan to revise the current health insurance payment system.
“It is the president’s duty to seek the public’s understanding after honestly explaining the reason why the government has given up on the policy,” said Rep. Woo Yoon-keun.
“This is not the first time that Park didn’t keep her promises, but it is apparent that the people would be more disappointed on this,” he said.
By Cho Chung-un (christory@heraldcorp.com)
Health Minister Moon Hyung-pyo told lawmakers Wednesday that he would not push ahead with the plan aimed at changing the way the government collects fees from health insurance subscribers this year.
The remark quickly raised speculation that the minister may have been under pressure from the presidential office to backpedal on the policy to avoid agitating taxpayers already upset with the recent tax increases.
Cheong Wa Dae, however, exacerbated the mess Thursday as it flatly denied the minister’s remark, saying that the government would consider introducing the new system. The ministry backtracked from the new health insurance policy entirely on Moon’s judgment, said presidential spokesman Min Kyung-wook.
“We believe that (the remark came from) the health minister’s own judgment that the government may need deeper discussion on the policy in order to form a social consensus,” he said.
The Park government has been seeking ways to implement a new system to fairly impose health insurance fees based on subscribers’ income levels.
The new policy on health insurance was to plug an obvious loophole in the system. Under the current payment system, some subscribers with similar incomes pay different health insurance fees and those who are registered as a dependent in a family are not obliged to pay the mandatory fees even if they hold massive amounts of assets.
The unfairness of the system sparked criticism when a mother and her two daughters committed suicide last year after suffering from financial difficulties. Because none of the family members were employed, they had to pay a monthly health insurance cost of 50,140 won, which was calculated based on their assets, even though other rich subscribers enjoy the same health service for free if they are registered as dependents.
The revision of the system was one of Park’s campaign pledges.
Minister Moon’s remark follows the harsh public criticism the Park administration faced over the government’s new tax settlement scheme. In the face of strong resistance, the government and the ruling Saenuri Party agreed to push for revision of the tax code to offer more tax refunds to eligible taxpayers.
The main opposition New Politics Alliance Democracy lashed out at the government for backtracking on its plan to revise the current health insurance payment system.
“It is the president’s duty to seek the public’s understanding after honestly explaining the reason why the government has given up on the policy,” said Rep. Woo Yoon-keun.
“This is not the first time that Park didn’t keep her promises, but it is apparent that the people would be more disappointed on this,” he said.
By Cho Chung-un (christory@heraldcorp.com)
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Articles by Korea Herald