Health Care System
The healthcare delivery system in Korea is the result of many improved aspects in the quality of life. Convenience, universal coverage, aid and assistance programs, and the freedom of choice are the main focuses of their system. Koreans have the right to choose any physician and any facility they choose to receive medical care whether that be a clinic or hospital as their first point of contact (Song, 2009). Koreans have had universal healthcare coverage since 1989 and by 2000 all were integrated into one insurer called the National Health Insurance Program (Song, 2009). The system is broken down into three subcategories of structure and operation that include the Ministry of Health, Welfare and Family Affairs which is in charge of supervision and policy decision making as well the direction of medical services, the National Health Insurance Corporation in which it’s major role is to manage the National Health Insurance Program that covers all citizens and the Health Insurance Review Agency that reviews the monetary flow of delivery. As the life expectancy is increasing, there is a growing social burden to caring for the elderly with increased medical expenses. The Long-term Care Insurance Program assists elderly people with significant limitations in performing activities of daily living. Coverage includes both home care and institutional services (Song, 2009). Low income households are eligible to apply for the Medical Aid Program in which the government can pay for all medical expenses that the patient cannot afford (Song, 2009).
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Although Korea’s health care system has many benefits for the citizen, it is not perfect. Regional inequalities are an issue that should be addressed because most of these benefits only apply if you live in highly populated urban areas. More than 90% of health care providers practice in urban areas where 80% of Koreas population resides. Rural areas fall short of these benefits. Regional barriers are a major concern as there is a large medical service gap between urban and rural areas. Another challenge Korea’s health care system faces are competition between clinics and hospitals because of the freedom to choose who and where you can receive medical care. Lee et al (2014) found that many citizens choose to make the hospital their first point of contact which can leave the clinics running dry. Because of the competition, smaller clinics are purchasing equipment such as CT and MRI machines. In the study done to assess the necessity of hospital utilization done by Lee et al. (2014), they found that 90% of hospital utilization was found to be unnecessary. The government is making strides to encourage the use of local clinics by increasing coinsurance rates.
