Jeon Jin-suk: "Long-term Care Standard Model Hub Institutions Are Fraudulent Benefit Recipients"

2 out of 3 Sites Found with Fraudulent Claims Amounting to 136 Million KRW
"Strengthening Public Interest Takes Priority Over Industrializing Social Services"

The Central Social Service Agency, which is promoting the ‘Social Service Standard Model Sharing Project,’ has been found to have a hub institution responsible for preparing the standard plan and overseeing quality control that committed fraudulent claims under the Long-Term Care Insurance.

According to the National Assembly audit data submitted by Jeon Jin-sook, a member of the Democratic Party of Korea representing Gwangju Buk-gu Eul, to the National Health Insurance Service on the 21st, two out of three companies participating as hub institutions from 2022 to 2024 were caught for fraudulent claims under the Long-Term Care Insurance. The amount involved reached 136 million KRW.

In fact, the social cooperative Dounuri was caught for fraudulent claims amounting to 5.57 million KRW due to violations of the ‘liability insurance subscription standards’ and ‘additional personnel placement bonus standards.’ Dongbu Care Co., Ltd. was found to have fraudulently claimed 5.59 million KRW last year by increasing the number of service days and visits and violating the placement bonus standards for visiting care social workers. Despite this, this year, it was again caught for fraudulent claims due to violations of liability insurance subscription standards and additional personnel placement bonus standards.

Jeon Jin-sook Assembly Member

The Central Social Service Agency has been promoting the ‘Social Service Standard Model Sharing Project’ to develop, standardize, and disseminate social service supply models, and selected three long-term care standard model hub institutions in May last year. Since social service supply centered on small-scale institutions has limitations in securing self-sustainability and improving service quality, the project aims to provide standard plans to small-scale institutions and jointly conduct administrative processing, marketing, and education to reduce costs and manage quality.

Rep. Jeon stated, “It is absurd that the Central Social Service Agency selected institutions caught for fraudulent claims two years in a row as hub institutions, claiming they chose excellent social service providers. The selection of fraudulent claim companies as hub institutions should be revoked, and thorough verification of participating institutions in future projects must be conducted.” She emphasized, “At this time, strengthening publicness should take priority over promoting the industrialization of social services.”