[2024 National Audit] Despite Allegations of Special Treatment at Jaseng Korean Medicine Hospital... Director Kang Jung-gu Says, "No Guidelines Established"

HIRA Recognizes Fees Only for Decoction Rooms of 6 Certification Institutes
47% of Medical Institutions Register Decoction Rooms at Jaseng Korean Medicine Hospitals

The Health Insurance Review and Assessment Service (HIRA) has announced guidelines stating that it will not recognize claims for non-certified external decoction pharmacopuncture fees, raising suspicions that special favors were given to Jaseng Korean Medicine Hospital. There are claims that the current automobile insurance treatment fee system was changed in a way that favors Jaseng Korean Medicine Hospital, whose chairman is the father-in-law of Lee Won-mo, the Secretary for Public Discipline at the Presidential Office.

On the 16th, Jeon Jin-sook, a member of the National Assembly's Health and Welfare Committee from the Democratic Party of Korea, raised these allegations of favoritism against Kang Jung-gu, the president of HIRA, during the committee's national audit.

Earlier, in February of this year, the Ministry of Land, Infrastructure and Transport changed the fee system so that only aseptic and sterile pharmacopuncture solutions prepared at government-certified external decoction rooms could be used for pharmacopuncture prescribed to traffic accident patients. Jeon and others pointed out that among Korean medicine hospitals with government-certified external decoction rooms, Jaseng Korean Medicine Hospital has the most branches, and that nearly half of the medical institutions that registered external decoction rooms and claimed pharmacopuncture costs were affiliated with Jaseng Korean Medicine Hospital.

According to the 'Status of Medical Institutions Using Certified External Decoction Rooms and Insurance Claim Amounts' data disclosed by Representative Jeon, among 9,095 medical institutions using aseptic and sterile pharmacopuncture solutions, 46.3% (4,208 institutions) used pharmacopuncture solutions from the Seongnam external decoction room under Jaseng Korean Medicine Hospital.

Jeon said, "Recognizing only pharmacopuncture from certified external decoction rooms violates the Ministry of Land, Infrastructure and Transport's notice and is a rogue administration that did not go through stakeholder consultations. Especially, Jaseng Korean Medicine Hospital, which is seriously discussed in favoritism controversies among certified external decoction rooms, has appeared. Everyone knows that the chairman of Jaseng Korean Medicine Hospital has a close relationship with President Yoon Seok-yeol," she stated.

Kang Sun-woo, also from the Democratic Party of Korea, said, "There are criticisms that automobile insurance pharmacopuncture benefits are tailored to Jaseng," "Safety of pharmacopuncture is naturally important. However, it should not be monopolized by Jaseng Korean Medicine Hospital. There are ongoing suspicions because Harpagophytum root is used in pharmacopuncture produced at Jaseng's external decoction room. If this is a misunderstanding, HIRA should establish guidelines to dispel it," she emphasized.

In response, President Kang said, "Since the Ministry of Land, Infrastructure and Transport creates the guidelines, we can submit opinions to them," adding, "If necessary, we will establish them, but what you are saying is largely different from the facts. (Because there have been no problems so far) if there is a problem, we will address it."

Then Representative Kang pointed out, "You blame the Ministry of Land, Infrastructure and Transport, but they said, 'It is not limited to adopting specific technologies or certifications.' However, HIRA is the one that only recognized pharmacopuncture made at six certified external decoction rooms as eligible for fees." She continued, "Minister Cho Kyu-hong of the Ministry of Health and Welfare responded that he would audit the claims that health insurance fees for herbal decoctions flow into Jaseng Korean Medicine Hospital. What is the position of the HIRA president on this?"

President Kang replied, "Since HIRA was not involved, I think negatively. Recognizing only six decoctions is not favoritism but giving fees as recognized. At least for herbal decoctions, there has been no fact of concentrating them on a specific hospital," denying the allegations.

Representative Kang pointed out, "47% of the external decoction rooms registered by frontline medical institutions were Jaseng's. Nearly half of the medical institutions that registered with Jaseng's decoction rooms intended to claim pharmacopuncture fees. As a result, 50% goes to Jaseng Korean Medicine Hospital based on this standard." She added, "At a meeting of related associations on May 14, Lee Jin-ho, the eldest son-in-law of Chairman Shin Joon-sik and director of Jaseng Korean Medicine Hospital, attended as a representative of the Korean Medicine Hospital Association, and a decision was made to recognize only pharmacopuncture made at external decoction rooms. Like the herbal decoction project, pharmacopuncture benefits are being pushed under the guise of the Korean Medicine Hospital Association, effectively promoting what is called Harpagophytum root. Yet, you say there is no problem?" she questioned.

President Kang answered, "There is no problem," and Representative Kang warned, "We will watch how sincere you are in protecting Jaseng Korean Medicine Hospital's assets in the future."