Healthcare in South Korea and New Zealand
In South Korea, health services are privately provided. More than half the cost is catered for by the public sector. As Jeong ( 2011) states, More than 90% of the private clinics and hospitals are personal, and they have employed about 90% of the specialist doctors. In 1977 South Korea enforced a national health care system, and by 2007, 96% of the South Koreans were covered by the insurance. A program known as the Medical Aid covered the remaining 4% of the Korean public. This program is mainly meant to assist the poor, and the people and the private sector fund it.
Through the Health Ministry, the National Health Corporation, and the Parliament, apart from funding the national health, the public sector is also involved in controlling the insurance system, handling the medical fee schedule, and stating the federal health benefits. The employed contributors who finance the insurance system in South Korea are expected to give a certain percentage of their salary. At the same time, the self-employed contributors pay a rate regarding their income and property they own. In the 2018 fiscal year, the country spent over 12 million U.S dollars.
Like in South Korea, most people in New Zealand enjoy private insurance services that help pay the copayments noncovered services. In this country, according to Gauld ( 2020), there are mainly two types of insurances; public health insurance and private health insurance. In public health insurance, the country’s permanent dwellers enjoy a wide range of publicly funded services through general taxes. Treatments concerning accidents are an exception in this type of insurance. Accidents are covered by a scheme known as no-fault accident compensation. Nonresidents who include undocumented immigrants and tourists, pay the full cost for treatments. The government spent NZ$ 16.2 billion in the 2016-2017 financial year and NZ$ 16.78 billion in the 2017-2018 financial year.
In South Korea, most national health insurance beneficiaries are the elderly or those suffering from severe diseases. These beneficiaries pay low copayments while the other beneficiaries pay the regular rates. Jeong ( 2011).
Various institutions in New Zealand provide private health insurance. These companies, which range from profit to non-profit organizations, cover up to 5% of the health expenditure in the country, according to Gauld ( 2020). Private insurance covers the cost-sharing services, surgery in private institutions, and private outpatient consultations. The insurance is also used to access the nonurgent services faster.
In South Korea, being a beneficiary of the private insurance scheme is voluntary thou members must contribute to the national health insurance. Besides, the beneficiaries of this private insurance do not pay the user fee.
In South Korea, copayments are also part of the payment in the healthcare system. The insured persons are expected to pay a certain percentage of the treatment cost. Depending on the type and level of treatment, the copayment differs. According to Jeong ( 2011), if an insured person pays an amount above the copayment set standard within six months, they are exempted from further copayments.
In New Zealand, health care is mostly free for children. These are the children at the age of thirteen and below. In South Korea, some costs may be incurred to treat children below this age. For instance, according to Goldrick (2020), healthcare in South Korea is not free, but it is reasonable.
From the above, it is evident that the health care systems in South Korea and New Zealand have some similarities and differences. Both countries offer insurance policies to their citizens, but how the insurance policies work is different. A parallel can also be seen in the public, and the private sectors are involved in funding the healthcare system in both countries. The difference comes in that in South Korea, the private sector is dominant, while in New Zealand, the public sector is dominant.
References
Gauld, R. (2020, June 5). New Zealand. Joint Wealth Fund. https://www.commonwealthfund.org/international-health-policy-center/countries/new-zealand#:~:text=New%20Zealand%20has%20achieved%20universal,General%20taxes%20finance%20most%20services
Goldrick, S. (2020, May 6). We should follow South Korea’s example of how to provide a nation with healthcare. CT Viewpoints. https://ctmirror.org/category/ct-viewpoints/we-should-follow-south-koreas-example-of-how-to-provide-a-nation-with-healthcare/
Jeong, H. (2011, January 11). Korea’s National Insurance-Lessons From the Past Three Decades. Health affairs. Retrieved September 30, 2020, from https://www.healthaffairs.org/doi/10.1377/hlthaff.2008.0816