Caregiver Health Insurance Coverage Reductions in South Korea
Starting in May, South Korea’s non-life insurance companies will significantly reduce their caregiver health insurance coverage. This decision follows ongoing consumer complaints and disputes, including issues with non-payment of long-term care insurance claims.
The Financial Supervisory Service has directed major non-life insurance companies to revise their caregiver coverage products, limiting services to only severely ill patients. The move aims to address concerns over excessive coverage and overtreatment, particularly for mild conditions such as spinal sprains.
By the end of April, major non-life insurance companies will remove excessive coverage standards based on internal calculations, such as loss ratios for caregiver coverage. They are also reviewing product revisions for both mild and severe patients, set to take effect in May.
The Financial Supervisory Service emphasized the need to revise product coverage to prevent overtreatment and ensure that caregiver services are limited to those who truly need them. This regulatory action is part of a broader effort to reform the insurance industry in South Korea.
The changes are expected to impact the health insurance landscape in South Korea, with a focus on more appropriate and responsible coverage. Insurance companies will need to adapt their policies to comply with the new regulations, ensuring that their products better align with the actual needs of their customers.
