Health Security System	http://www.hoyaenglish.com

Medical Insurance for English Teachers

          The National Medical Insurance Plan covers everyone residing in Korea and is priced at a percentage (~5%) of one’s salary – the employer and the employee each pay 50% of the premium, which is calculated from the first date of employment and deducted monthly. The benefit package for foreign residents is the same as that for Korean nationals meaning you will pay 20% to 50% of the treatment received at a hospital or medical clinic and 30% of the charge for prescription drugs.

For foreign employees the law reads that companies with 5 or more foreign employees must enroll their foreign staff in the National Medical Insurance Plan.

The Korean government requires that all foreign workers have national health insurance coverage, regardless of whether or not they also covered by a foreign/global policy while in Korea. (Note: As of mid/late 2007, if a foreign national can show that he/she already has medical coverage, the choice of also paying for the Korean national medical insurance will be optional.  National medical insurance provides for a discounted cost on some medical services and procedures with the patient paying the balance. When using global insurance, the patient pays first and then submits a claim to her/his insurance carrier.

Contribution Rate

According to the Health Insurance Act, the Insurance Finance Committee established that the National Health Insurance Corporation was allowed to set the contribution rate for the employed insured at less than 8% of monthly wages and salaries. The contribution rate of the employed insured is 3.94% for ordinary employees and for government and private school employees. The contribution of the employed insured is borne by both employee and employer, or as set out in your contract.

**For private school employees, the owner of the private school pays only 30% of the contribution; the government subsidizes 20% of the contribution and the employee pays the other 50%.**

Health Care Benefits and Costs

The benefit package for foreigner is the same as for Korean nationals. When the insured person and qualifying dependents, no matter whether they are foreigners or Korean nationals, get health care service at the health care facilities, they have to pay as follows;

For treatment at the hospitals and medical clinics: 20%-50% of the total charges applicable by NHI

For prescription drugs filled at the pharmacy: 30% of the total charges applicable by NHI

Treatments of diseases that do not hinder work or daily living, and the cost of drugs and medical materials for simple fatigue, hair loss, freckles, warts,, acne, impotence, hereditary deformity of genitals, simple snoring, plastic surgery, cure of sequela, and operation to correct eyesight are not covered by the health insurance.

More information about NHIC benefits can be found at http://www.nhic.or.kr/

In order to ensure the early detection and treatment of chronic degenerative diseases such as hypertension, diabetes, liver diseases and pulmonary tuberculosis, NHIC is providing a health check-up service for the insured and their dependents once every two years. Foreigners in the Korean medical scheme for more than 2 years can receive an examination free of charge.

Treatment Options

You are NOT entitled to receive care at any private clinic or hospital. You must always only report to local government operated clinics or hospitals if you wish to use your Korean medical card for subsidized treatment.

Important:

You must be a correctly registered resident in Korea and hold an Alien Card to be registered for the scheme. The insurance is a medical scheme only and not applicable to any other issue or situation that may happen whilst in Korea during your travels. You should always take advice before departure from your home country about other travel costs and applicable insurance's. NOTE: some insurance may not cover you if you are a registered resident with a working visa in another country.

A Comparison of International and Korean Medical Insurance

When you gain employment in Korea, you will be faced with the option of accepting the Korean medical scheme coverage that by law must be offered to you by your employer, or taking your own comprehensive cover from your country of origin.

There are a number of private insurance providers in Korea and your employer may be able to select between membership in one of these schemes or in the Korean scheme. Being a member of a Korean medical scheme will allow you to visit the majority of Korean doctors, clinics and hospitals within your residential area and gain access to medical help.

If you are going to be taking the Korean health insurance option, you will not have any coverage until your school has correctly registered you at immigration for an alien residency card.

This procedure should be done as soon as possible after you enter the country with an E2 visa stamp in your passport. Your employer is also required to complete final paperwork and register you at the local education board.

If you have entered without your E2 visa stamped into your passport, you will have to wait until you have received the final visa stamp in your passport (most likely after a trip to Japan).

This 'Alien registration card' process must legally be completed within 90 days of your entry into Korea. The cost for completing this registration is minimal (approximately $15US). Until you have the card returned to you, it could be extremely difficult to attend a Korean clinic for medical help, as you would not have the required documentation of your residency status. Your employer is also required to register you in the Korean medical scheme, and in turn you should receive a small card (booklet) showing your membership and financial status.

In our experience over 70% of individual schools do not correctly register their teachers into any medical scheme and instead may just deduct an employee contribution and hope that you will not know how the medical payments work! If you have a medical emergency, often the school just elects to pay your doctors bills, or you find you do not have correct coverage.

If you have been registered correctly and have your Alien Registration card, and medical registration card, the Korean scheme is an excellent, basic coverage to access cheaper medical care. However, be aware that it is basic medical coverage only, and you are not covered in any way for any other problems that can occur while in Korea, and you will have no insurance coverage as soon as you leave Korea and travel to another country.

This is important, as most teachers in Korea will travel to countries close by, such as Japan, China and Vietnam at some time during their contract time in Korea.

If you elect to purchase a comprehensive travel insurance cover policy from your home country, you must purchase a policy that covers you in a working situation.

A few schools will fully insist on joining you into the Korean scheme, even if you have taken your own insurance. You may find that schools do this for you and other schools may get you to sign a statement to prove you have your own cover, or ask for proof of your policy to check the cover it offers.

Overall it is a matter of personal choice how you arrange your insurance coverage while working in Korea.

Some more info’s about the Medical Insurance Plan:

http://korealawblog.com/downloads/National_Medical_Insurance_Program_2007.pdf

http://emlab.berkeley.edu/users/webfac/held/korea.pdf