Proposal may ease NHIS strain slightly but leaves systemic aging and healthcare cost issues unresolved
South Korea’s National Health Insurance Service (NHIS) is reportedly considering imposing health insurance premiums on income from temporary or casual labor, including both domestic and foreign workers. This reported policy shift seeks to address mounting pressures on the health insurance fund, driven by the dual challenges of an aging population and declining birth rate. Temporary labor income — traditionally exempt due to its association with economically vulnerable groups — currently allows a significant number of high-earning day laborers to avoid contributing to the health insurance system.
Data reportedly shows that 458,000 foreign workers in temporary roles earned about $6.5 billion (9 trillion won) in 2023. By bringing temporary laborers into the premium pool, the NHIS reportedly aims to secure new funding sources and strengthen the financial sustainability of the health insurance system.
South Korea’s National Health Insurance Service (NHIS) is reportedly considering imposing health insurance premiums on income from temporary or casual labor, including both domestic and foreign workers. This reported policy shift seeks to address mounting pressures on the health insurance fund, driven by the dual challenges of an aging population and declining birth rate. Temporary labor income — traditionally exempt due to its association with economically vulnerable groups — currently allows a significant number of high-earning day laborers to avoid contributing to the health insurance system.
Data reportedly shows that 458,000 foreign workers in temporary roles earned about $6.5 billion (9 trillion won) in 2023. By bringing temporary laborers into the premium pool, the NHIS reportedly aims to secure new funding sources and strengthen the financial sustainability of the health insurance system.
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