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KMID : 0613620060260020141
Health Social Welfare Review
2006 Volume.26 No. 2 p.141 ~ p.166
Sustainable Growth Rate(SGR) based Estimation of the National Health Insurance Fee Level
Tchoe Byong-Ho

Shin Yoon-Jeong
Shin Hyun-Woong
Abstract
It was a general method to calculate the fee level of social health insurance by the cost analysis of medical institutions. This method has entailed problems such that medical expenditures are likely to increase proportionally according to the increasing supply of hospitals and clinics, and the credibility of provider¡¯s cost reports has always been doubtful
every year. This article suggests a new method to overcome the limitations of the cost analysis which is a revised version of Sustainable Growth Rate(SGR) based calculation of Medicare¡¯s fee level(so called ¡®conversion factor¡¯) in USA. SGR system manages to maintain a certain target expenditure and contains the automatic increase of expenditures according to medical providers¡¯ increments. The result calculated by the SGR system shows that the conversion factor is 56.87~57.02 won which is increased 2.66~2.93% compared to 55.4 won in 2003. The calculation of SGR based conversion factor would minimise an unnecessary disputes by utilising the official indicators published by government, and improve the predictability how the national health insurance expenditure will increase. To introduce SGR system successfully, the non-insured sector¡¯s medical expenditures should be controlled, and if not, some of health insurance expenditures will be
transferred to the medical cost outside of national health insurance.
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