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Government Pushes New Social Security System for Elderly
By Lee Sun-young, The Korea Herald
South Korea
May 24, 2005
The new social insurance scheme is designed to cover age-related healthcare costs - such as treatment at recuperation centers - separately from existing health insurance, relieving the financial burden of the aged from individual families, officials explained.
"Since the younger generation will benefit from the new insurance plan only after some years, we expect some resistance from the public, but we have agreed that it cannot be delayed any longer. The authorities will make the utmost effort to solicit public understanding and support on the issue," said Uri Rep. Rhee Mok-hee after a policy coordination meeting between the ruling party and the Ministry of Health and Welfare.
The decision is part of the government's various measures to prepare to handle a rapidly aging society and strengthen the public support system for the growing elderly population.
Experts have warned of a looming demographic shift in Korean society, predicting more than 14 percent of the total population to be over 65 by 2018. According to the governmental data, at present around 12 percent of people aged 65, or 530,000, are stricken with age-related diseases and in need of public health support, and the number is expected to surpass 650,000 by 2010.
At yesterday's meeting, officials also agreed to push through the related legislation during the coming plenary session of the National Assembly, Rhee said. Parliament is slated to open at the beginning of September.
Under the envisaged public senior care plan, an individual with an average income whose monthly contribution to national health insurance is 46,000 won will have to pay an additional 2,300 won, or 4.1 percent, to the long-term care insurance scheme as early as the latter half of 2007. If the insurance scheme is fully introduced in 2010, the amount of money an average income earner will have to shoulder is expected to rise to 4,500 won per month. "If each household shares the burden of healthcare for senior citizens, the average monthly cost for recuperation centers will be reduced to 300,000 or 400,000 won from current over 700,000 won," Rhee said.
In a separate meeting yesterday, Prime Minister Lee Hae-chan was set to discuss with Uri Party lawmakers the labor and pension reform bills which are at a standstill in the National Assembly.
In the last special session of the National Assembly, parliamentarians delayed the handling of government-initiated bills on non-regular workers in the face of vehement opposition from labor and failed to reach an agreement on how to reform the national pension scheme.
According to local reports, the Uri lawmakers were likely to call for the government and party to stand firm and make sure the legislation gets through the parliament in the next special session in June.
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