Next Year's Long-Term Care Insurance Rate at 12.81%... KCCI Urges "Strong Measures for Spending Efficiency"

"In-depth Review of New Cognitive Support Grades and Expansion of Out-of-Pocket Reduction System"

[Asia Economy Reporter Kiho Sung] The Korea Employers Federation stated that the long-term care insurance premium rate for next year, which has been raised by 4.40 percentage points compared to the health insurance premium, requires "intensive expenditure efficiency measures."

On the 24th, the Federation made this statement regarding the decision of the Long-term Care Committee. The Ministry of Health and Welfare held the 5th Long-term Care Committee meeting on the 22nd, which continued until midnight on the 23rd, and approved the 2023 long-term care insurance premium rate at 12.81%. Accordingly, the average monthly premium per subscriber household next year is expected to increase by about 898 KRW, from 15,076 KRW in 2022 to approximately 15,974 KRW.

The Federation conveyed, "The business community requested that the increase in the long-term care insurance premium rate for next year be minimized to a level close to freezing, considering comprehensively the more than doubling of premiums due to the Moon Jae-in administration's long-term care insurance coverage enhancement measures (2018?2022), the accumulated burdens on small and micro enterprises and small business owners caused by the COVID-19 pandemic, and the public suffering from the recent complex economic crises such as high inflation, high interest rates, and high exchange rates."

They added, "However, as arguments were raised that the increase in service usage due to aging and expanded coverage, as well as the need to improve worker treatment and accumulated financial balance, must be addressed, the final decision was made to raise the rate by 4.40%, close to the government's proposed plan."

Furthermore, they pointed out, "Companies and the public have endured a rapid rate increase of 87.3% since 2017," and emphasized, "Even now, the government should conduct a comprehensive review of the introduction of the cognitive support grade and the expansion of the out-of-pocket reduction system, which were aggressively pursued by the previous administration, and undertake intensive expenditure efficiency measures."