Review of Korea Health system

Republic of Korea Health System Review

Health Systems in Transition. Vol.5 No.4 2015,

Asia Pacific Observatory on Health Systems and Policies

 

Abstract

The Republic of Korea has achieved a rapid improvement in health outcomes thanks to economic development and universal health coverage through national health insurance. It achieved universal coverage of the population in 1989, just 12 years after the introduction of social health insurance. In 2000, all insurance schemes were merged into a single payer with a uniform contribution schedule and benefits coverage. Despite universal coverage of the population, financial protection and high OOP payments have remained a key policy issue. Health-care delivery relies heavily on private providers. This system induces demand for new, though sometimes not cost-effective, services and technologies not yet in the national health insurance benefit package because they are not subject to fee regulation. The referral system does not function well in the private sector-dominated delivery system. Tension between private providers and the Government has been substantial, and providers have been a stumbling block to health care reforms such as the prospective payment system. In contrast to rapid economic growth and decreasing inequality until the 1980s, inequality has been increasing since the 1990s. Policy to reduce the inequality in health care and health outcomes should be a priority for the Government. Rapid ageing of the population is a challenge to the health-care system, and the new long-term care insurance improves access for older people to long-term care. Coordination between hospitals and long-term care facilities along with strengthening of primary health care and gatekeeping can contribute to the continuum of care to meet the needs of an older population.