Running Head: NATIONAL INSURANCE PLANS 1

Health Insurance Programs in Korea, Israel and South Korea.

Name

Institution
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Each state has different mechanisms in which it uses to operate its National Health

Insurance plans. National health insurance plans are aimed at reducing the cost of healthcare

among the citizenry in any given state. The insurance may be administered by the private or

public sector (state) or both. In this case, the beneficiary of the program pays reasonable

premiums to payers that ensure that the government pays for healthcare and the health care

providers including doctors and hospitals provide people with quality care at lower or no cost. In

this discussion, I will discuss the National Health insurance systems in South Korea, Israel, and

the Republic of Korea.

The Republic of Korea introduced compulsory national health insurance (NHI) system in

1977 to ensure that the poor people accessed affordable health care. The plan started with

corporations employing more than 500 employees and then extended to public workers, school

teachers, and organizations with over 300 workers (Kwon, 2018). Pilot projects were also

conducted among farmers in rural areas. Twelve years later, Universal health coverage was

achieved, and this has improved access to healthcare. In Israel, an insurance program was

initiated in 1973, requiring all employers to include their employees in medical insurance. The

national insurance plan in Israel is called Kupot Holim. In South Korea, Health insurance plan is

carried out by the state through the National Health Insurance Program (NHIP).

Similarities and comparisons

In the three states, it is mandatory for all citizens to join the respective National Health

Insurance plan that ensures a highly subsidized health care treatment for all the members

attending public hospitals. For instance, South Koreans are required by law to join the NHIP.

Also, for Israelis and Koreans, it is compulsory for the citizens to join an insurance program.

Other than the membership, contribution of the insurance funds in the states is made by the state
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employees and self-employed individuals. For instance, in the Republic of Korea, the health

insurance finances are organized into groups where state employee insurance funds are separate

from the self-employed individuals where the contribution of self-employed is determined by the

number of dependents and the ability to pay (Kwon, 2018). In South Korea, members of the

NHIP contribute through a social insurance fund that is taxed on their annual salary. In this case,

the immediate family members are automatically covered by the insurance plan. Lastly, in Israel,

members of the Kupot Holim self-employed and wage-earners contribute 3.5% of their monthly

salary below 5,800 shekels and an additional 5% on earnings above 5, 800.

In all the states, there is a single national insurer system resulting from merging of

various plans. However, Israel health care system has a Kupot Holim plan that consists of four

plans, including Clalit, Meuhedet, Leumit, and Maccabi. Also, Korea and Israel have a

copayment system for insured services; however, the copay is lower in Israel than in Korea as

Israelis co-pay very small funds for doctor visits and medicine. An interesting point in Israel’s

system is that there is no capping on the health services provided to members of a health

insurance plan and there is no limit for services received per year (Maltz, 2017).

The benefits packages among the states differ; however, there is a similarity in that

diagnosis, curative, emergency care, and drugs are covered by the national insurance plans. In

Korea, the NHI also covers dental care, health checkups twice a year, cancer screening. Also, an

additional cash benefit for funeral and maternity is issued by the Korean government (Kwon,

2018). In Israel, the benefits package, referred to as the health basket consists of several health

services including surgery, treatment for drug abuse, first aid, fertility treatment, ambulance

services, among others. The health basket is similar (uniform) for all the four plans. However,

unlike South Korea and the Republic of Korea, Israel health system (Kupat Holim) allows the
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members to get supplementary insurance, which covers additional services that are not included

in the regular basket.

The main difference between the Republic of Korea, South Korea, and Israel systems is

that in South Korea, expatriates and foreign visitors are allowed access to health care when

necessary without restriction. In this case, foreigners are legally required to apply for health

insurance after arrival in the country. Also, treatment at private hospitals is not covered by the

NHIP, which makes the cost of treatment very high for those seeking private services.

In conclusion, mandatory insurance for citizens ensures reduced competition among

healthcare providers, which allows for quality care among the patients. The objective of a

national insurance plan is to reduce the cost of healthcare and promote quality healthcare among

patients. In this case, compulsory membership has increased coverage leading to the increased

utilization of health services and life expectancy due to improved access to healthcare among

citizens.
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References
Kwon, S. (2018). Advancing Universal Health Coverage: What Developing Countries Can Learn

from the Korean Experience? Universal Health Care Coverage Series No. 33, World

Bank Group, Washington, DC. Retrieved from

http://documents.worldbank.org/curated/en/418791516185685994/pdf/Advancing-

universal-health-coverage-what-developing-countries-can-learn-from-the-Korean-

experience.pdf

Maltz, J. (2017). Cheaper Israeli Health Care Proves a Draw for U.S. Immigrants. Haaretz.

Retrieved from https://www.haaretz.com/israel-news/.premium-cheaper-israeli-health-

care-proves-a-draw-for-u-s-immigrants-1.5461097