[2022 National Audit] Ministry of Health and Welfare to Submit National Pension Reform Plan to the National Assembly in October Next Year

Newly appointed Minister of Health and Welfare Cho Kyu-hong is taking the oath as a witness at the National Assembly's audit of the Ministry of Health and Welfare held on the 5th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Kim Young-won] The Ministry of Health and Welfare announced that it plans to prepare a reform plan for the National Pension and submit it to the National Assembly in October next year. To uncover welfare blind spots such as the 'Suwon Three Mothers' case, the ministry intends to cooperate with other agencies including the police.

On the 5th, the Ministry of Health and Welfare presented the current status of its work, including these details, at the National Assembly Health and Welfare Committee's audit.

Based on the financial projections initiated last August, the ministry plans to discuss reform proposals involving adjustments to figures such as the contribution rate and income replacement rate, while supporting the National Assembly's pension special committee in discussions on structural reforms such as the integration of the National Pension and other occupational pensions. Currently, the ministry is promoting the formation of a Fund Management Development Committee under the Financial Projection Expert Committee, which was launched last August.

Regarding health insurance, the ministry has established a plan to promote health insurance financial reform by re-examining items where expenditures are rising faster than expected. Centered on the Health Insurance Financial Reform Promotion Team, launched last August, the ministry will prepare detailed implementation plans for each task and establish a health insurance financial reform promotion plan within this month. However, it intends to guarantee appropriate health insurance benefits as much as possible and strengthen support for essential medical services in areas with decreasing demand such as childbirth and pediatrics, as well as high-risk and complex areas such as severe and emergency care.

The ministry also announced plans to establish a 'Welfare Blind Spot Discovery and Support System Improvement Plan' by the end of this month to address welfare blind spots like the Suwon Three Mothers case. To identify the whereabouts of households in crisis that have lost contact, the ministry will strengthen information linkage with other agencies such as financial and debt information, and simultaneously prepare cooperation measures with the police.

Additionally, the ministry revealed plans to increase medical school quotas. Based on the medical-government agreement from September 2020, it will consult with medical organizations and sufficiently gather public opinion to promote the increase in medical school quotas based on social consensus. According to the ministry, the medical school quota has remained unchanged at 3,058 students per year since 2006. In contrast, the nursing college quota has nearly doubled from 11,206 in 2007 to 23,183 in 2023.

To expand essential medical services, the ministry also announced plans to raise policy fees targeting areas that are avoided such as cerebral aneurysm craniotomy and areas with decreasing demand such as childbirth. It will increase policy-added fees mainly for high-risk and complex surgeries or nighttime and holiday emergency surgeries, strengthen compensation for essential medical services that incur deficits such as pediatrics, intensive care, and infectious diseases, and expand infrastructure.

To address the low birthrate issue, the ministry plans to introduce parental benefits, providing 700,000 KRW next year and 1,000,000 KRW from 2024 for children aged 0, and 350,000 KRW next year and 500,000 KRW from 2024 for children aged 1. It will also consider supplementing the 4th Basic Plan for Low Birthrate and Aging Society (2021?2025) to reflect changing policy demands.

Furthermore, the ministry stated it will promote extending the emergency welfare support period from one month to three months to assist low-income groups facing sudden crises such as unemployment.

Regarding youth preparing for independence (protected children aging out of care), the ministry plans to raise the independence allowance to 400,000 KRW per month next year and increase dedicated support personnel from 120 this year to 180 next year.