Health insurance in Korea: opportunities and challenges

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Abstract
A substantial change has taken place in the Korean health sector with the introduction of a national health insurance system. Many issues raised by this new system are of interest to both developed and developing countries. Major questions of interest are: (i) how the government of Korea was able to move from the first step of health insurance schemes in 1977 to completion of the system in 1989; (ii) how a predominantly private-oriented health care delivery and financing system could support government-initiated compulsory health insurance schemes; and (iii) if there are any inherent problems with this health insurance system. While there are some positive aspects, the study shows that many basic problems remain unresolved. Unless basic reforms are implemented at system level, in the long-run neither efficiency nor equity will be achieved. It is important, therefore, for both the government and the health sector to grasp the significance of the situation and actively pursue better formulated strategies.

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