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EDBurden on health insurance

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Expanded coverage cannot last long without fiscal health

Magnetic resonance imaging (MRI) tests have increased at an alarming rate, ever since health insurance coverage expanded in accordance with President Moon Jae-in's generous healthcare policy. More and more people have been given MRI tests even for light symptoms. Such unnecessary high-cost tests and overtreatment are putting a growing financial burden on National Health Insurance.

According to the Health Insurance Review & Assessment Service, the number of MRI tests between October last year when the test began to be covered by health insurance and March this year reached 1.49 million. This is more than double the figure for the preceding six months (April to September 2018) that stood at 730,000. Medical expenses for MRI tests also surged from 199.5 billion won to 414.3 billion won during the period. "Moon Jae-in Care," a set of healthcare policies intended to expand insurance coverage, envisions covering all MRI tests by 2021.

What's notable is that patients at small hospitals and clinics had MRI tests in droves, indicating that the costly diagnostic equipment is being overused. Alarmed by the explosive rise in medical bills, the Ministry of Health and Welfare said it would come up with countermeasures, including strengthening the criteria for insurance coverage and reducing its scope.

The government move is somewhat confusing but necessary, given the deteriorating fiscal balance in the National Health Insurance system. Last year Korea suffered a deficit from the operation of health insurance for the first time in eight years and its accumulated premiums that had once reached 20.6 trillion won are expected to be depleted by 2026.

The authorities should do whatever they can to stem the rapid rise of medical expenses. They need to consider, if necessary, raising health insurance premiums. What's certain is that it will be impossible to keep expanding coverage without ensuring the fiscal health of the insurance system.




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