Annual Average 7.5% Increase in Per-Person Medical Expenses for 4 Major Severe Diseases
Life Insurance Association: "Preparing for High Medical Costs Efficiently with CI and GI Insurance"
[Asia Economy Reporter Ki Ha-young] The medical expenses for the four major severe diseases have increased by an average of 11.9% annually over the past five years. This is due to the use of the latest surgical techniques and expensive equipment, which has led to higher surgery costs.
According to the Life Insurance Association on the 15th, the average annual increase rate of medical expenses for the four major severe diseases?cancer, cerebrovascular disease, heart disease, and rare incurable diseases?over the past five years (2014?2018) was 11.9%. The medical expenses for cerebrovascular diseases increased the most at an average annual rate of 21.4%, followed by heart disease at 13.5%, cancer at 12.7%, and rare incurable diseases at 9.3%. The per capita medical expenses for the four major severe diseases also increased by an average of 7.5% annually over the past five years, reaching 7,118,000 KRW in 2018.
The Life Insurance Association analyzed that the increase in medical expenses was due to the rise in the use of the latest surgical techniques and expensive equipment. In fact, the surgical medical expenses for heart surgery increased by 28% over the past five years, and vascular surgery expenses increased by 20.4%. The average cost of 33 major surgeries, including heart, vascular, hip and shoulder joints, cataracts, and hemorrhoids, also increased by 21.2%.
Although the National Health Insurance Service is expanding the coverage of the National Health Insurance, the patient is responsible for the out-of-pocket expenses and non-covered expenses that are not supported by the insurance benefits.
As the burden of medical expenses for severe diseases increases, the Life Insurance Association stated that it is efficient to prepare for high medical treatment costs and living maintenance funds through life insurance companies' CI insurance or GI insurance.
CI insurance is a representative product of health whole life insurance that pays a portion of the agreed insurance money in advance when a 'critical or fatal disease' or 'major surgery' occurs, reducing the economic burden on the insured.
GI insurance modifies the method of determining covered diseases somewhat, but its actual coverage is similar to that of CI insurance.
A representative of the Life Insurance Association said, "CI and GI insurance products have expanded coverage to include up to 45 covered diseases and increased the advance payment ratio of death benefits up to 100%. They also offer various special contracts and overlapping special contracts with the main contract, as well as healthcare services that enable proactive disease management."
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