|
KMID : 0613620200400040149
|
|
Health Social Welfare Review
2020 Volume.40 No. 4 p.149 ~ p.177
|
|
|
Financial Sustainability and Intergenerational Fairness of Long-Term Care Insurance in Korea
|
|
Kim Yong-Ha
|
|
|
Abstract
|
|
|
|
As fiscal expenditures for long-term care insurance (LTC) increased rapidly, the current fiscal balance turned to a deficit in 2016, resulting in a deficit of 660 billion won in 2019 in Korea. The accumulated balance decreased from a maximum of 2,352.4 billion won at the end of 2015 to 709.7 billion won in 2019. As a result, the premium-to-income ratio of the insurance also tripled from 0.21% in 2008 to 0.68% in 2020. In this article, we analyze the increase in financial expenditure of LTC by factors and check fiscal sustainability through a long-term fiscal outlook. Also the degree of redistribution between generations was analyzed by looking at the change in cost burden by generation. As a result, the increase in fiscal expenditure of LTC was due to the rapid increase of the elderly population, an increase in the recognition rate, and an increase in insurance unit prices. If this trend continues, the premium rate will exceed 1% in 2024, 3% in 2042, and 6.4% in 2065. It is suggested that in order to alleviate the cost burden of future generations to an appropriate level, it is necessary to suppress the factors of increasing fiscal expenditure and to reorganized the financial method to accumulate as much reserves for the LTC. It is proposed that related laws need to be revised for accumulating LTC reserves and making public funding.
|
|
|
KEYWORD
|
|
|
Long-Term Care Insurance, Insurance Finance, Aging, Insurance Actuary
|
|
|
FullTexts / Linksout information
|
|
|
|
|
|
Listed journal information
|
|
|
|