‘Long-term care insurance fund to dry out in four years’

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Long-term care insurance reserves will dry out in 2026 and create a deficit of 76.7 trillion received ($58.9 billion) in 2070, a lawmaker stated Friday, calling for the federal government to increase its monetary assist.


Rep. Lee Jong-sung of the ruling People Power Party made a declare primarily based on the long-term evaluation by the National Assembly Budget Office (NABO).


Rep. Lee Jong-sung of the ruling People Power Party(Source: Rep. Lee’s blog)
Rep. Lee Jong-sung of the ruling People Power Party(Source: Rep. Lee’s weblog)


According to the info, long-term care insurance is estimated to create a deficit of three.8 trillion received in 2030, 23.2 trillion received in 2040, 47.6 trillion received in 2050, 63.4 trillion received in 2060, and 76.7 trillion received in 2070.


The analytical report attributed the swelling deficit to the fast inhabitants getting old, citing the inhabitants projection of Statistics Korea.


The authorities statistical company predicted that the variety of folks 65 years and older will enhance by greater than 2.5 occasions, from 10.04 million in 2020 to 25.69 million in 2070.


In distinction, the economically energetic inhabitants aged between 15 and 64 was estimated to fall from 37.37 million to 17.36 million.


Given the fast inhabitants getting old, as proven by the rise within the variety of Koreans who acquired long-term care insurance advantages from 370,000 to 970,000 over the previous decade, the report anticipated the variety of beneficiaries would drastically enhance sooner or later.


Rep. Lee identified that the federal government has handed the burden ensuing from the fast enhance of long-term care insurance expenditure to subscribers.

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Its premium price rose from 12.67 % in 2018 to fifteen.31 % in 2019 and 20.45 % in 2020.


Assuming that salaried individuals who paid 200,000 received as well being insurance premium in 2017 paid 13,100 received for long-term care insurance, they paid 23,000 received for the latter in 2021, almost double that of 4 years in the past, Lee stated.


“It is wrong for the government to pass the financial burden resulting from rapid population aging to policyholders,” the PPP lawmaker stated. “Considering that the long-term care insurance is for older adults who have dedicated to the national development, the government should expand its financial support to the insurance to help it secure financial soundness.”



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