Health Care Financing and Delivery for the Poor in Korea

The health care program for the poor (Medicaid) in Korea is financed by the general revenue of the central and local governments. Due to the stringent criteria for eligibility and limited benefit coverage, the Medicaid has failed to provide the poor with sufficient protection for illness. Delayed payments to health care providers have led to the discrimination against Medicaid patients, deteriorating their access to medical care. Despite the rapid decrease in the program’s coverage of population, health care expenditure of the program has exploded, resulting in the chronic fiscal instability of the program. High health care expense in mental and long-term care also contributes to the cost inflation of the Medicaid program. This paper concludes by providing the directions of the Medicaid reform in the areas of financing, payment system, eligibility, and the organization of delivering care.