Parties target older voters with caregiver insurance proposals. But are they feasible?

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Parties target older voters with caregiver insurance proposals. But are they feasible?

Published: 29 Jan. 2024, 18:09 Updated: 29 Jan. 2024, 18:10

CHO JUNG-WOO
[email protected]

People Power Party floor leader Yun Jae-ok, center, speaks in a meeting held with his party and the government to negotiate policies on caregiver expenses at the National Assembly in Yeouido, western Seoul, on Dec. 21, 2023. [YONHAP]

Political parties in Korea are proposing major policies to appeal to the older generation ahead of the April general elections.

People Power Party (PPP) interim leader Han Dong-hoon’s first official act was visiting the Korean Senior Citizens Association on Jan. 3. He visited the association to apologize for remarks disparaging older adults made by a former PPP emergency steering committee member.

In November, the Democratic Party (DP) proposed extending national health insurance coverage to caregiver expenses as its first pledge for the upcoming general elections. The party also announced plans to provide free weekday lunches at senior centers.

Following the DP's proposal, the PPP and the government jointly announced on Dec. 21 their own policy to extend national health insurance coverage to caregiver expenses.

People Power Party interim leader Han Dong-hoon, left, speaks with Korea Senior Citizens Association Chairman Kim Ho-il at the association's office located in Yongsan District, central Seoul, on Jan. 3. [NEWS1]

These actions and proposals come as Korean society ages and, most importantly, as voters age.

According to the Ministry of the Interior and Safety’s data on Monday, 31.4 percent of the 44.3 million people above 18 eligible to vote are in their 60s or higher. The number of voters in their 20s and 30s remains lower at 28.8 percent.

This marks the first year that the number of voters in their 60s or higher outnumbers those in their 20s and 30s.

“The DP, which has relatively lower support from voters in their 60s or higher compared to the PPP, is leading with policies targeting older age groups,” said Kim Hyung-joon, a chair professor at Paichai University.

The proposal to cover caregiver expenses with national health insurance is a typical measure targeting older voters. People at nursing homes must pay for their caregivers entirely by themselves.

Caregivers are paid an average of 130,000 won ($97) to 150,000 won daily, or over 4 million won monthly.

Experts believe both parties have positioned themselves well in appealing to people cared for by caregivers.

However, whether health insurance can realistically cover caretaker costs remains to be seen.

Democratic Party chief Lee Jae-myung, front right, speaks in a conference held to discuss the policy to extend health insurance to caregiver expenses at a nursing hospital in Guro District, western Seoul, on Nov. 28, 2023. [YONHAP]

In 2021, 393,989 patients were hospitalized in nursing homes. Last year, total expenses on caregivers amounted to over 10 trillion won.

The national health insurance is expected to incur a financial loss this year, with its reserves projected to hit zero in 2028. As such, the DP plans to make its policy effective after 2027, considering the situation.

“Covering caregiver expenses with national health insurance will be difficult without gradually revamping the insurance system, including increasing insurance fees and addressing the causes of wasted insurance fees,” said Jeong Hyoung-sun, a health administration professor at Yonsei University.

The DP's policy to provide free lunch at senior centers faces a similar problem.

"According to the Welfare of Senior Citizens Act, the government and localities have subsidized half the cost of fees, including for heating, air conditioning, and purchasing grain, at some 60,000 senior centers nationwide,” said Seok Byoung-hoon, an economics professor at Ewha Womans University. He added that the recently proposed policy aims to cover labor and food costs.

He added, “The measure needs to consider the pay-as-you-go budget rule," referring to parliamentary regulations that require proposals to include measures to fund them.

BY KIM KI-HWAN, CHO JUNG-WOO [[email protected]]