South Korea has a modern and efficient healthcare system. Both Western and Eastern medical practitioners and medicines are available, and both are covered under the government’s National Health Insurance (NHI).
South Korea's National Health Insurance programme is a compulsory social insurance system which covers the whole population. By law, any company that employs more than five foreign workers must enrol their foreign workers in a health insurance programme. The company is expected to pay 50 percent of their employees' health insurance premiums each month, and employees the other half.
Doctors, dentists, dermatologists and other specialists in South Korea are all affordable and readily available, as are general healthcare products and pharmaceutical drugs.
According to an Ipsos poll last year, though healthcare has improved in many countries in the previous five years, patients in South Korea, Argentina and Japan are the most satisfied with their medical care,
In a survey of 15 countries, people in those countries gave top grades for improvements in their national healthcare system since 2008, along with residents of Belgium and Australia, which rounded out the top five nations.
Ipsos polled a total of 12,001 adults online in 15 countries in Europe, Asia and North America about whether healthcare in their countries was better now than in recent years.
It also asked residents to rate access to doctors, specialists, a hospital, diagnostic tests, drugs and their experiences in treatment options, quality, coordination, speed and level of care. South Korea scored the highest marks in all categories.
Ipsos surveyed about 1,000 adults in each country, except for Argentina, Belgium, Hungary, Poland and South Korea which each had a sample of 500-plus participants.
Healthcare in South Korea is provided by a compulsory National Health Insurance (NHI). Everyone resident in the country is eligible regardless of nationality or profession. Foreigners living in South Korea who are registered with the National Health Insurance Corporation receive the same medical benefits and services as Korean nationals.
High quality healthcare is available in South Korea in general hospitals, oriental hospitals (which use traditional eastern medical practices), public health centres and private hospitals. There is a three tier provision of medical facilities, depending on the size and the number of departments.
Pharmacies are plentiful and both Western and Eastern medicines are available in abundance. Pharmacies are usually located near hospitals, as hospitals in Korea are not permitted to dispense prescription medication.
National Health Insurance (NHI) system is compulsory and required by Korean law. Everyone resident in the country is eligible regardless of nationality or profession. The National Health Insurance Corporation (NHIC) is the only public insurance institution operated by the Ministry of Health and Welfare in Korea.
The system is funded by compulsory contributions from all residents and government subsidies. Payment is made by an individual's employer unless they are self-employed, in which case they pay it themselves. Foreigners living in South Korea who are registered with the NHIC receive the same medical benefits and services as Korean nationals. The amount an individual pays in NHIC contributions depends on their income and economic power. People who are registered as disabled and those over the age of 65 pay less.
The cover provided by the insurance is comprehensive; it includes health check-ups, tests and diagnosis, treatments, surgeries, preventive care, hospitalisation, nursing, rehabilitation and transportation.
There are two types of health insurance in South Korea i.e. Employee health insurance (workplace insurance) and Self-employed health insurance (community insurance).
Employee health insurance insurance is paid by an individual's employer and is taken from the employee's salary; half of the total contribution is paid by the employer and half by the individual. The contribution is proportional to the wage earned. Any foreigner working in Korea for a company with more than five employees can receive Korean National Health Insurance. Their spouse and children under the age of 20 will also be covered.
Those who cannot be covered by employee health insurance are able to apply for self-employed health insurance. It is available to citizens living in the country; foreigners can apply if they have completed alien registration or listed their place of residence as South Korea. An individual's contribution is calculated based on their household income; this takes into account income, property, vehicles owned, gender and age.
Insurance benefits are the same for all contributors. When receiving health care individuals pay a certain amount towards their care in what are called "co-payments". The amount of a co-payment depends on where the care is given and the type of care.
Typical co-payment amounts are 20 percent of inpatient hospital care, 30-50 percent of outpatient care and 35-40 percent of pharmacy bills. Many Koreans opt to also join a private health insurance scheme to provide more comprehensive cover than is provided by National Health Insurance.
For people employed by a company in South Korea, enrolment is carried out by their employer. All foreigners need an alien registration card to support their application. A foreigner wishing to apply for self employed health insurance needs to fill in an application form and submit it to the NHIC branch listed on their registration card. An alien registration card and immigration record is needed to support the application. Applicants are issued a Health Insurance Card immediately.
High quality healthcare is available in South Korea in general hospitals, oriental hospitals (which use traditional eastern medical practices), public health centres and private hospitals. Medical providers are divided into three types depending on their size and the number of departments they have:
- First tier medical facilities include private hospitals and public health centres. They have a limited number of departments and provide services for preventing disease and treating early symptoms.
- Second tier medical facilities provide inpatient and outpatient care as well as emergency treatment. These facilities have more than four departments with medical specialists providing care with between 30 and 500 beds.
- Third tier medical facilities are general hospitals or hospitals attached to medical schools. They have more than 500 beds and have numerous specialists working in many different departments. They provide specialized services for medical emergencies. A referral letter from a first or second tier facility is needed to get treatment in a third tier facility; without one treatment is possible, but is very expensive.
Hospital appointments can be made by visiting a hospital with a valid health insurance card. It is best done in advance. Payment for hospital services can be made at a hospital's administration office; many hospitals accept payment by credit card.
The South Korean social security system uses four insurance schemes to provide public assistance and social welfare services, all of which are compulsory. All Korean citizens must make contributions to the insurance schemes such as National pension,National health insurance
Industrial accident compensation insurance and Unemployment insurance
These social insurance schemes protect and secure people's income, health and employment. Foreigners who live and work in the country can subscribe and contribute to all four and receive the same benefits as Korean nationals. This cover is also extended to their dependants.
Medical Aid Program
This program was established in 1978 for lower income families. In this plan the government pays for all of the medical expenses when the patient cannot afford to. After 2004 this program was expanded to also insure patients who had rare and chronic diseases and well as for children. Though this program is officially funded by a cooperation of central and local government, the money is often insufficient. Thus they receive money from the NHIP when necessary.
Long Term Care Insurance Program
As the average age of the population has been increasing, so has the average life span. As a result, Korea’s 65 plus demographic increases not only in the amount per age group, but also in the number of age groups. Though it has been tradition in Korea for families to take care of their elders, it is increasingly becoming a burden in modern households. In order to ease this burden, the Long Term Care Insurance Program was created, which covers 3.8 per cent of the elderly. This program is funded by the insured, government subsidies, as well as co-payments by the beneficiaries.
Telehealth opportunities
After a long-standing prohibition on telemedicine, South Korea’s Cabinet passed a bill allowing doctors to utilize telehealth technology to diagnose and treat remote patients. The bill was approved on in March this year at a Cabinet meeting chaired by Prime Minister Chung Hong-won, and has been sent to the National Assembly for passage. Telehealth has also received the support of South Korean President Park Geun-hye, who expressed her intent in January to position the telehealth industry as a growth engine for the country.
Historically, the widespread practice of telemedicine in Korea has been restricted by a provision in the medical practice laws that permits medical consultations only when the doctor is able to examine the patient in-person and face-to-face. In October 2013, Korea’s Ministry of Health and Welfare announced a plan to allow the use of telehealth technology to diagnose remote site patients . In response, members of the Korean Medical Association threatened a doctor strike. However, a membership vote in early 2014 reflected that over 60 per cent of the Korean Medical Association was in favour of the government’s telemedicine plan, and the doctor strike was suspended.
Under the current plan, South Korea will implement a six-month telemedicine pilot program, after which it will enact a bill allowing for telemedicine and for-profit subsidiaries. Patients with chronic diseases such as hypertension and diabetes, people with disabilities and people living in remote areas will all be prime candidates for telemedicine services. Patients will be able to consult with doctors, receive diagnoses, and prescriptions for medications without an in-person visit. If the pilot program is successful, the telemedicine bill would be effective in 2015.
Opening the door to telehealth and mHealth in South Korea presents exceptional business opportunities to the health care industry, particularly manufacturers and suppliers of telehealth technologies.