Starting next year, foreign residents in South Korea seeking eligibility for health insurance as dependent beneficiaries must have a minimum of 6 months of residency.
According to the Ministry of Health and Welfare and the National Health Insurance Service on Oct. 26, an amendment to the Health Insurance Act, which includes a requirement of “residing in the country for a minimum of 6 months” to qualify as a dependent under a foreigner working for a local employer, passed through the Health and Welfare Committee of the National Assembly on Sept. 21. It is currently undergoing the deliberation process in the Legislation and Judiciary Committee of the National Assembly.
If the amendment passes through the Legislation and Judiciary Committee and is approved during the plenary session of the National Assembly in November or December, it is expected to come into effect as early as January 2024, or, at the latest, in early March of the following year, considering the three-month period after promulgation.
The amendment includes a provision that adds a requirement of “staying in the country for 6 months or more” in addition to the existing criteria, which includes the relationship with the employed individual, income, and assets, for foreigners to qualify as dependents.
The aim is to prevent foreigners who reside in the country for a short duration from becoming dependents, thereby ensuring that foreign relatives are listed as dependents only when necessary, preventing situations where they enter the country for medical procedures or treatment and then depart.
However, to avoid potential unintended consequences, such as foreign diplomats or the families of foreign corporate executives not being able to immediately access health insurance coverage, exceptions have been made. Immediate health insurance benefits will be available for dependents who are minor children or spouses and for those with residency status like marriage immigrants, permanent residents, or students.
The fiscal balance of health insurance for all foreign participants is in surplus every year. This means that foreign residents in South Korea who are enrolled in health insurance pay more in premiums than they receive in insurance benefits. Even last year, the National Health Insurance Service reported a surplus of 556 billion won (US$409.27 million) in the health insurance finances for foreigners.
Contrary to some negative views that foreigners are draining the health insurance budget, when looking at the overall foreign enrollees, they actually contribute to strengthening the financial health of the health insurance system.
When broken down by country, however, China still faced a deficit, being the only country to record a deficit of 22.9 billion won last year. The Chinese enrollment in health insurance has consistently remained in a deficit state although the deficit has been decreasing. The deficit in the health insurance finances for Chinese participants, which stood at 150.9 billion won in 2018, dropped to below 1 billion won in 2019, reaching 98.7 billion won. It further decreased to 23.9 billion won in 2020 and 10.9 billion won in 2021, marking a significant decline.