Focus on livelihood bills just like that

A bill aimed at simplifying the process for claiming hospital indemnity plans (HIP) — dubbed the second national health insurance policy as 80 percent of the South Korean population is subscribed to it — has passed the National Policy Committee in the legislature last week. The idea was a campaign pledge by President Yoon Suk Yeol. The Anti-Corruption and Civil Rights Commission had recommended the simplification of the claim process for consumer convenience in 2009. Although 14 years have passed, the National Assembly has reached bipartisanship for the good of the people.

The simplified process can lighten the hassle for medical consumers. To claim for reimbursement for hospital treatment uncovered by the national insurance, subscribers have to visit hospitals to collect the receipts and doctor’s reports to claim indemnity. Unclaimed claims for HIP amount to 200 billion won ($156 million) to 300 billion won a year due to the trouble. The latest amendment could save paper and administrative work for hospitals and insurance companies.

The medical community opposes the move, arguing medical reports could pile up at the intermediary agents like the National Health Insurance Review and Assessment Service to expose private information of patients. But the real reason is that hospitals do not want to share the information about the uncovered charges that vary among themselves. If the uncovered treatment becomes transparent as the covered cost, hospitals and doctors could be pressured by the government and insurance companies to lower the medical charges uncovered by the patient’s insurance policies.

Of course, reimbursement claims could surge if the process becomes easier, but hospitals won’t be able to overcharge for uncovered services. The National Assembly plans to prohibit the use of patients’ information aside from insurance claims. The agency that sends patients’ records to insurers on behalf of patients would be specified in the Enforcement Ordinance.

The government is considering assigning the task to the Korea Insurance Development Institute instead of the review agency, but hospitals oppose both of them. Even if the amendment to the Insurance Act passes the National Assembly, the process of adding the details to the Enforcement Ordinance won’t be easy.

The left-wing Progressive Party opposed the bill at the standing committee. The campaign headquarters for free medical service comprised of the country’s two major umbrella trade unions and the Korean Federation Medical Activists Groups for Health Rights held a press conference, criticizing the bill for allowing private insurers to exploit patients’ reports and leading up to privatization of public health service. Stretching the bill as a prelude to the privatization of public health service only paints them to be self-serving and worsen public trust in these associations.