"At This Rate, Crisis Looms"... Elderly Medical Expenses Surpass 50 Trillion Won, Nearly Half of Total Medical Costs

Per Capita Medical Expenses for Seniors Continue to Rise
From 4.74 Million Won in 2020 to 5.37 Million Won Last Year
Now Nearly Half of Total Medical Costs

A university hospital in Seoul (photo to aid article understanding). Photo by Kang Jinhyung

The medical expenses for people aged 65 and older have increased by nearly 40% over the past four years, surpassing 50 trillion won last year. This amount accounts for almost half of the total medical expenses for the entire population.

According to data obtained from the Ministry of Health and Welfare by Kim Miae, a member of the National Assembly's Health and Welfare Committee from the People Power Party, the total amount of health insurance medical expenses (including both out-of-pocket payments and insurance benefits) for the elderly aged 65 and over rose by 39.1%, from 37.4737 trillion won in 2020 to 52.1221 trillion won last year.

In the first half of this year alone, their medical expenses reached 27.9817 trillion won, already exceeding half of last year's total. During the same period, the per capita medical expenses for those aged 65 and older increased from 4,741,000 won to 5,368,000 won. As of June this year, per capita medical expenses stood at 2,800,000 won, which is 52% of last year's figure.

As a result, the proportion of total medical expenses for people aged 65 and older out of the entire population's medical expenses has continued to grow. The share of medical expenses for those aged 65 and older increased from 43.1% in 2020 to 44.8% last year. As of June this year, it has risen to 46%, approaching half of the total.

Kim Miae stated, "The fact that nearly half of all medical expenses are accounted for by people aged 65 and older is evidence that rapid population aging is already exerting direct pressure on the health insurance system. If this trend continues, the sustainability of health insurance will inevitably be at risk."

Meanwhile, according to the Ministry of Health and Welfare's 2nd National Health Insurance Comprehensive Plan (2024-2028), the current balance of the health insurance fund is expected to remain in surplus at 463.3 billion won through this year, but it is projected to turn into a deficit starting next year. The cumulative balance is expected to stay in the 30 trillion won range until 2027, but is estimated to decrease to 28.4209 trillion won (equivalent to 2.7 months of payments) by 2028.