보건복지부 영문홈페이지

2012 Ministry of Health and Welfare Work Plan 'Healthy People, Happy Korea'

- Creation of “Hope Welfare Support Team” that provides various customized welfare services in a comprehensive manner

- Restructuring of the medical system to control diabetes and hypertension that threaten public health

- Improvement of the national pension system and reinforcement of preparatory measures for baby boomers’ post-retirement such as the introduction of a national pension insurance premium pre-payment scheme, etc -

 

Ministry of Health and Welfare (Minister Rim, Chae Min; referred to as MOHW hereinafter) reported its 2012 Work Plan to President Lee, Myung Bak at its office building on 23 Dec.

 

After the presidential briefing, experts from different areas, field workers from community medical centers and clinics as well as officials from related government agencies and working-level officials from MOHW, etc had a heated discussion on “how to prepare for a healthy and secure post-retirement life.”

 

MOHW presented “Health People, Happy Korea” as a health and welfare policy vision at the briefing.  

 

Minister Rim said that given financial sustainability in light of the acceleration of the low birth rates and aging population, continued difficulty on ordinary people and the vulnerable class and increased spending on welfare, the fundamental structure of the health and welfare system should be improved through the establishment of a more efficient welfare system and a more thoroughly designed social safety net by accomplishing health and welfare reform missions that the government has been pushing ahead so far.   

 

Under such framework, MOHW presented the following policy challenges, aiming to achieve “healthier people, better-designed welfare, and more secure post-retirement.”

① Establishment of a medical system for preemptive control of chronic diseases

② Thorough completion of health and medical reformation

③ Reinforcement of national responsibility for and investment in health and medicine

④ Preparation of a highly efficient welfare delivery system

⑤ Establishment of a densely knitted social safety net to bring hope to people

⑥ Maximization of utilization of welfare resources by the government and private sectors

⑦ Secure post-retirement life prepared ahead of time

⑧ Aggressive investment in children

 

 Promotion Structure

 

Vision		Healthy People, Happy Korea
Goal		Healthier people, better-designed welfare, and more secure post-retirement
Major challenge		Establishment of sustainable health/medical system		Elimination of welfare “dead zone” with customized welfare system		Preparation of social foundation for low birth and aging population society
		-Establishment of medical system for chronic disease control -Conclusion of health and medical reform -Reinforcement of essential national health and medical care and safety control -Development of health industry in preparation for high-tech medicine		-Preparation of highly efficient welfare delivery system -Thoroughly designed social safety net that brings hope -Maximization of welfare resources by government and private sectors		-Secure post-retirement life prepared early on -Strengthening of child care support system -Child protection paradigm shift

 

Ministry of Health and Welfare presented the core policy actions in the Work Plan as below with specific examples.

 

Creation of “Hope Welfare Support Team” that provides various customized welfare services in a comprehensive manner

 

□ Example

L’s family is subject to the national basic livelihood security program (1.2 million won of living expenses per month supported by the government) where the father is alcoholic and the mother is jobless, but wants to work. They have one 8-year-old son and one 3-year-old daughter. Since this family has multiple issues, various programs should be applied but there hasn’t been any sufficient support system through which such services can be comprehensively provided.

 

□ Action plan

Ministry of Health and Welfare plans to provide various customized services such as welfare, health, employment, residence, and education, etc by creating the “Hope Welfare Support Team” in cities, provinces, and districts in next April.   

 

‘Hope Welfare Support Team’ will consist of welfare-related government officials and consolidated service-specialized personnel through which a consolidated case management system by region is expected to be strengthened.   

* It will be created by adding six welfare-related government officials on average to the existing consolidated service-specialized personnel (private contract workers, four persons on average) and it will be run in various organizational forms according to different characteristics of each local and provincial government.  

 

❍ Expansion of Happiness E-Eum (meaning “happiness connection”) to maximize the utilization of welfare resources ➪ To prevent any omission or redundancy of services by expanding 'Happiness e-Eum' to the ministry-level welfare program. * 101 programs in 7 ministries in 2011(35%) → 186 programs in 9 ministries in 2012 (64%)→ 289 programs in 16 ministries in 2013 (100%) and all the other local and provincial government programs

The foundation for the underprivileged to get out of poverty by actually having a job even after they become no longer subject to the basic livelihood security program has been laid out along with the expansion of a benefit program to support education and education expenses for two years and a conditional asset development program called “Hope-Raising Savings Bankbook.”

* 7.4 billion won for 3,000 households in 2011→ 14.6 billion won for 5,760 households for 2012 (participants in the employment success package included)

** Program to help prepare a large sum of money up to six times greater than the original amount by adding a private aid in proportion to the employment income encouragement amount and an individual’s savings (206 thousand won for 15 thousand households in 2011 → 259 thousand won for 18 thousand households in 2012)

 

□ Expected result

The alcoholic father can receive treatment and job training, the children will receive systemic childcare service such as childcare cost support, social service vouchers, etc and the mother will be provided with an opportunity to get a job through the Hope Ribbon Project and the national pension insurance premium aid, etc.

- If this consolidated support program gets implemented successfully, this family will be able to have greater hope a few years after as they won’t have to be on the basic livelihood security program any more.

* Current monthly income of 1.18 million won (basic benefit), tenancy deposit 10 million won ⇒ three years later, monthly income of 2 million won and 27 million won of asset

 

Restructuring of the medical system to control hypertension and diabetes that threaten public health

 

□ Example

Mr. P had diabetes in his early 40s but he didn’t receive diagnosis and treatment until later. Consequently, he ended up having severe complications such as myocardial infarction, below-knee amputation, etc and died of heart failure at the age of 68 (actual case of a chronic disease patient).

< Chronic disease patient, Mr. P’s case>

 

❍ Many people have chronic diseases in Korea but they rarely receive treatment for them. ➪ 34% of adults (11.76 million out of 30 million) have hypertension and diabetes ➪ Only 41% of those suffering hypertension and diabetes are receiving treatment and the rest 59% suffer worse conditions with severe complications such as stroke and myocardial infarction, etc due to the failure in controlling the diseases.

□ Action plan

Ministry of Health and Welfare determined that there had been insufficient policy actions taken against major chronic diseases such as hypertension and diabetes that threaten the public health and it will, from now on, reinforce its health and medical policies focused on prevention and control.

 

It will promote health policies to reduce health risk factors such as smoking, heavy drinking and excessive consumption of sodium, etc to prevent chronic diseases from occurring.

- Warning pictures will be required to be attached to the tobacco case (law revision in 2012) and campaigns to encourage a healthy diet such as a “campaign for less consumption of sodium,” etc will be carried.

- Stronger actions against alcohol-related issues will be taken such as the prohibition of alcoholic beverage advertisement in subway, movie theater, etc (June 2012), the ban on sales of alcoholic drinks and drinking at public facilities (law revision in 2012), a pilot program called “Wet House” (a special rehab center for alcoholic homeless people).

 

Also, by enhancing the national health check-up program, a system to allow early diagnosis and discovery of chronic diseases will be set up.

- Currently, the national health check-up system is divided into three parts (general, lifecycle, and cancer) and its effect is not that satisfactory compared with the amount of money spent on it (800 billion won per year). 

- A more effective check-up system will be built by considering ways to consolidate it, with primary focus on target diseases by age and gender.

- By applying 30% of markup when medical treatment is conducted on holiday, holiday medical treatment will be encouraged, expanding accessibility to medical service by public.

 

□ Expected result

Medical expenses spent until Mr. P died at the age of 68 amounted to around 140 million won.* If the above system had been applied to a case like Mr. P’s, enabling the patient to receive treatment and care in his 40s or before then, the expenses would have been greatly reduced to as little as 15 million won (600 thousand won per year**).   

* Source: Health Insurance Data, expenses spent after the age of 50 (amount that has combined the amounts covered by the insurance and paid by an individual)  

** Total medical expenses on average per each visit by diabetes outpatients aged between 50 and 64 × no. of hospital visitation days on average = 600 thousand won (outpatient care; 8 times, medicine cost included)

- MOHW plans to bring up the hypertension control rate from the present percentage of 37.4% to 50% and the diabetes control rate from 29.5% to 35% by 2020 in addition to the medical expenditure reduction goal.

 

National Pension will take on a key role in ensuring a secure post-retirement life for baby-boomers

 

□ Example 1

Mr. K, a baby-boomer, aged 48, is a head of an ordinary family of four members and he is working at a medium-sized company. Currently, he is paying the national pension premium and the monthly private pension premium of 340 thousand won in preparation for his post-retirement.

- Mr. K will receive pension as he will be retiring at the age of 55 but he will have to spend it on his children’s wedding, etc. Also, after retirement, he will receive the private pension benefit of 480 thousand won per month and will begin to receive the national pension benefit at the age of 63.

- However, even after these two pension benefits are combined, it is still not enough for his family’s living expenses required after retirement. In Mr. K’s case, the preparation for post-retirement has been being well done compared to others as he’s been well paying the national pension premiums and is also subscribed to the private pension plan.  

 

Koreans usually retire from work at the age of 53 on average just as Mr. K’s case and after retiring, they mostly become self-employed businessmen or irregular workers whose income is unstable. They don’t have enough capacity to prepare for their post-retirement life as most of their assets are concentrated on real-estate properties (75.8%) which have low liquidity.

 

□ Example 2

Mr. P, a baby-boomer, aged 54, took an early retirement from a medium-sized company a month ago.

- Mr. P visited the National Pension Service out of concern for his post-retirement life and found out that he might not be able to receive the pension benefit on a monthly basis later.

- It is because he has been paying the premiums only for seven years now when one has to pay the premiums at least for ten years to become eligible for the pension benefit for the old-age.

- Since Mr. P was concerned about possible exhaustion of his severance pay due to living expenses and education cost for his children, he received consultation to find ways to regularly receive the national pension benefit each month. However, he had to come back with an answer saying that there was no way.

 

□ Action plan

 

MOHW will establish and implement measures to guarantee post-retirement incomes for each generation.

 

It will strengthen its efforts to encourage those in their 20s and 30s to prepare for their post-retirement in advance.

- From next year, low-income employees (600 thousand employees who earn less than 1.25 million won per month) will receive the pension premium aid (supported by Ministry of Labor) and it will make efforts to increase the national pension subion rate by securing additional performance data for those in special types of employment, etc.

 

The system will be improved to resolve the pension shortage for those in 40s and 50s, baby boomers.

- The national pension premium 5-year advance payment scheme will be introduced to allow subscribers to pay the insurance premiums in advance when they have a large sum of money such as severance pay, etc. This will increase chances for the subscribers to receive the benefits because their subion period will get extended. 

- For those who can work a little longer, a partial pension benefit deferral system will be adopted. This will allow partial receipt of the pension benefit when one is still able to work and when one gets older, he will receive more benefits. This will be very beneficial to those who can still make some income after retirement.

* ex) When a beneficiary (born in 1955) eligible for 800 thousand won of the pension benefit defers the receipt of 50% of the pension benefit for five years, he will receive 400 thousand won from 61 to 65 and begin to receive 960 thousand won from the age of 66. 

 

The support for the elderly now will continue to ensure a secure life for them.

- It also lends emergency money for post-retirement such as medical expenses and monthly/long-term house rental costs to the pension beneficiaries. (Post-retirement emergency money lending: within twice as much as the yearly pension amount, 5 million won at maximum)

- While continuously providing the basic old-age security pension*, it will come up with measures to redesign the basic old-age security pension scheme to securely guarantee the incomes of the elderly with low incomes.  

* Beneficiaries and pension amount: 3.79 million persons in 2011, 91 thousand won→ 3.86 million persons in 2012, 94 thousand won

- MOHW will help create jobs, expand markets, and provide opportunities for on-the-job training through partnership with private companies while increasing  jobs with financial aid for the elderly who are still able to work*.

* The elderly who are able to work: create market-oriented jobs and increase jobs with financial aid (20→22만개)

 

□ Expected result  (* a case related to the introduction of the national pension premium 5-year advance payment scheme for baby boomers)

 

If P cannot earn income because of ill health after retirement, he will receive the pension benefit based only on the premiums that he has been able to pay up to then and interests in a lump sum allowance since he has failed to fulfill the minimum subion duration of ten years. That is to say, he cannot receive the pension benefit regularly on a monthly basis.  

 

However, if the five-year advance payment scheme for baby boomers is introduced, he will be able to pay premiums in advance when he has a bulk money such as severance pay, making it possible for him to fulfill the minimum subion period (7 years + minimum 3 years). Thus, he will be able to receive the old-age security benefit monthly.