Business · Companies · 1 hr ago
South Korea to offer discounts for older medical insurance plans
South Korea plans to introduce two discount options in November for people with older indemnity health insurance plans.
These plans, from the first and second generations, often cover more treatments but can have higher premiums.
One option lets customers keep their current plan while dropping coverage for some treatments not covered by national insurance, such as certain therapies, injections or scans.
Dropping some coverage could lower premiums, and choosing all the listed exclusions and cost-sharing options could cut a first-generation plan’s premium by about 40%, according to an estimate in the story.
The other option gives a temporary discount to people who switch to the newer fifth-generation plan; a three-year discount of 50% is being considered.
The newer plan has narrower coverage and higher out-of-pocket costs, including a 50% share for some non-serious treatments compared with 10% to 20% under older plans.
Customers are advised to weigh their usual medical use against the savings before choosing; the options are scheduled to begin in November.
South Korea plans to introduce two discount options for people with older medical insurance plans in November.
The options are aimed at holders of first- and second-generation plans facing high premiums.
One option would lower premiums if customers give up cover for certain non-covered treatments or accept higher cost-sharing.
Another would discount premiums for a limited period for customers who switch to a fifth-generation plan.
The article says switching decisions should take account of medical use because newer plans offer narrower cover and higher cost-sharing.
- Who
- Holders of first- and second-generation medical insurance plans in South Korea.
- What
- Two options are planned: a discount for reducing some cover, and a discount for switching to a fifth-generation plan.
- When
- They are scheduled to take effect in November 2026.
- Where
- South Korea.
- Why
- To ease the premium burden on holders of older plans.
This story does not have two clearly opposing sides.
Financial authorities said the discount options were scheduled to take effect in November.
The selected discount rider and contract-switch discount are scheduled to begin.
- Scheduled start
- November 2026
- Eligible older plans
- First- and second-generation plans
- Potential fifth-generation discount
- 50% for three years; the method is under discussion
- First-generation premium example
- For people in their 60s, about 150,000 won monthly for men and 200,000 won for women at one insurer
- Possible rider discount
- About 40% if a first-generation holder selects both stated coverage exclusions and the 20% cost-sharing option
What people are saying
Because coverage scope and types vary greatly by generation, customers should check whether the plan covers the treatments they need.
Decisions on switching plans or taking discount riders should take into account not only premium costs but also usual hospital visits and claim amounts.