South Korea's Private Insurance: Understanding The System

South Korea's healthcare system is among the best in the world, with top-quality medical care provided by highly qualified professionals. The country's healthcare system is based on the National Health Insurance Service (NHIS), a public health insurance programme run by the Ministry of Health and Welfare. The NHIS combines all health insurances into a single national health insurer, and as of 2006, about 96.3% of South Korea's population was under the National Health Insurance Program. The remaining 3.7% of the population is covered by the Medical Aid Program, a social welfare program that insures those unable to pay National Health Insurance contributions. In addition to the public healthcare system, South Korea also has a well-developed private healthcare sector, with many private insurance companies offering plans to supplement the public coverage.

Private insurance for expats with chronic illnesses

Expats with chronic illnesses should consider purchasing private health insurance in South Korea. While the quality of medical treatment remains the same across public and private healthcare, private insurance can help to reduce costs.

Although South Korea's public healthcare system is of extremely high quality, it does not cover chronic illnesses. As such, many Koreans and most expats hold private medical insurance to supplement their public coverage. Private insurance can help to subsidise the out-of-pocket payments required when using the public system.

How to Apply for Private Insurance

To apply for private insurance, expats will need the following documents:

• Alien Residence Card
• Employment contract
• If your visa is sponsored by family members in Korea, you will need an official certificate that verifies this relationship.

Cost of Private Insurance

The cost of buying into a private insurance scheme in Korea is about the same as the public health insurance scheme (114,000 KRW/100 USD). However, it is important to remember that you will need to pay into both schemes.

Recommended Private Insurance Providers

The following companies offer international health insurance plans for expats in South Korea:

• Cigna Global
• BUPA Global
• NOW Health International
• MSH
• Aetna
• April International
• GeoBlue

Private insurance for those who want to avoid lengthy wait times

South Korea's public healthcare system is of extremely high quality, but it is common to experience lengthy wait times, even in emergency situations. Private insurance will not reduce the waiting times, but it can be beneficial in other ways.

The Benefits of Private Insurance

While private insurance will not make much difference in terms of waiting times, it can be beneficial for those with chronic illnesses, special medical needs, or serious diseases. Private insurance can help to subsidize the typically 20-50% out-of-pocket payment required when using the National Health Insurance (NHI) scheme. This can make private insurance more cost-effective for those with high medical expenses.

The Cost of Private Insurance

The cost of private insurance in South Korea is similar to the cost of the NHI scheme, at around 100 USD per month. However, it is important to note that individuals are required to pay into both schemes if they choose to have private insurance.

Applying for Private Insurance

To apply for private insurance, individuals will need the same documents as for the public health insurance scheme: an Alien Residence Card, an employment contract, and, if applicable, an official certificate verifying their relationship with family members in Korea who are sponsoring their visa.

The Bottom Line

While private insurance may not reduce wait times, it can be a valuable option for those with high medical expenses who are seeking to reduce their out-of-pocket costs.

Private insurance for those who want a greater level of comfort

South Korea's healthcare system is of extremely high quality, and the country's residents enjoy excellent public healthcare. In fact, by some metrics, South Korea's healthcare system is among the best in the world.

The country's healthcare system is based on the National Health Insurance Service (NHIS), a public health insurance program run by the Ministry of Health and Welfare. However, a significant portion of healthcare in South Korea is privately funded. According to an NHIS survey, 77% of the population have private insurance. This is because the national health plan covers at most 60% of each medical bill.

Private insurance in South Korea is available through local insurance companies or international insurance companies. Expats with chronic illnesses or special medical needs will especially value private policies for the benefit of lowering copayment charges. While private insurance won't change the cost of medical procedures, it will subsidize the out-of-pocket payment required when using the NHIS. International insurance is a popular choice with expats for private policies due to their global benefits and comprehensive coverage.

If you are seeking a greater level of comfort during your medical treatment in South Korea, private insurance is a good option. Private facilities offer a greater level of comfort and even luxury. Rooms are private, modern, and spacious. Nearly all staff speak English, and there is a greater array of specialists with shorter waiting lists.

International insurance policies can be purchased through travel insurance or health insurance policies. Travel insurance covers medical costs in the case of accidents or sickness, as well as lost baggage or rescheduling fees. This type of insurance is generally short-term.

If you are looking for a longer-term solution, international health insurance provides more comprehensive coverage. The top international health insurance providers will offer plans for expats in South Korea with comprehensive coverage and customizable benefits. Some of the best international health insurance companies for expats in South Korea include Cigna, BUPA Global, and more.

Cigna Global, for example, provides flexible insurance plans with 24/7 access to a customer care team. Their plans are both customizable and comprehensive. Cigna offers Silver, Gold, and Platinum plans with different levels of coverage and limits. All three plans share several common key coverage benefits, including inpatient and day-patient treatments, and accidental death or total permanent disability compensation.

Bupa Global offers its members tailor-made plans and guaranteed lifetime renewal. They provide high-quality service with a personal relationship manager available for their members. Some of the features of Bupa's plans include emergency evacuation and repatriation, 24/7 access to medical advice through their service centre, and direct access to specialists without a referral.

Private insurance for those who want to cover travel

Although South Korea has a public healthcare system, it is recommended that visitors to the country purchase travel insurance to cover themselves in the event of unexpected troubles. This is because, despite South Korea being a safe country to visit, the cost of healthcare is high.

There are several insurance companies that offer travel insurance for South Korea, including:

• InsureMyTrip
• VisitorsCoverage
• Insured Nomads
• SafetyWing

These companies offer a range of plans to suit different needs and budgets, with coverage options including medical emergencies, trip cancellations, travel disruptions, lost or stolen luggage, and more. The cost of travel insurance will depend on factors such as the length of the trip, the age of the traveller, and the level of coverage desired.

It is worth noting that travel insurance is not mandatory for South Korea, and visitors are not required to have insurance to seek treatment. However, purchasing travel insurance is highly recommended to protect yourself financially and give you peace of mind during your trip.

Private insurance for those who want to cover pre-existing conditions

South Korea's healthcare system is of extremely high quality, and the country was ranked first in the world for healthcare access by the OECD. The country's public healthcare system is referred to as the National Health Insurance (NHI) scheme, and all residents living in the country for longer than six months are required to register.

Private insurance is available in South Korea through local or international insurance companies. It is particularly beneficial for those with pre-existing or chronic conditions, as it can help to lower copayment charges. While private insurance won't change the cost of medical procedures, it will subsidise the out-of-pocket payment required when using the NHI.

There are three main options when it comes to pre-existing conditions and private insurance in South Korea:

• Exclusion: The insurer will not pay or reimburse the policyholder for medical bills related to the pre-existing condition.
• Moratorium: The insurance company offers health insurance but excludes pre-existing condition coverage for a specific time known as the waiting period, which is usually 24 months. After this period, the insurance company will review its decision.
• Coverage with loading: Insurance companies may offer coverage for pre-existing conditions, but only with higher premiums. Not all pre-existing conditions are eligible for this kind of coverage, and not all companies offer this option.

It's important to note that even with private insurance, wait times in South Korea can be lengthy, even in emergency situations. This is due to the high quality and affordability of the country's healthcare system, which leads to crowded public facilities.

Frequently asked questions