South Korea will increase its national health insurance rate by 2.04 percent next year, in line with the new Moon Jae-in administration's policy to strengthen the state's welfare infrastructure, the health ministry said Tuesday.

The increase will push up insurance rates set at 6.12 percent of the monthly salary or income in 2017 to 6.24 percent in 2018, the Ministry of Health and Welfare said.

Accordingly, salaried workers will pay an average of 102,242 won ($90.83) a month next year, up 1,966 won from 100,276 won a month this year.

 

The rate-hike was agreed during a national health insurance policy deliberation committee meeting between the government and insurance operators.

The Moon government has pledged to increase overall health insurance benefits while lowering payments for the underprivileged from July next year.

The rate has been on the rise every year since 2005, except in 2009 and 2017. The rate increase rose up to 2011, with rates hitting as high as 4 to 6 percent, but fell to around the 2-percent range.

The hike was adjusted down to 0.9 percent in 2016 after the reserve in collected insurance fees reached 20 trillion won ($17.72 billion). In 2017, the rate hike was frozen for the first time in eight years as the collected fees stood above the 20 trillion-won mark for the first time.

Market watchers also said the rate adjustment reflects a rise in medical costs, which greatly affects overall health insurance fees.

In June, insurance operators agreed on a 2.28-percent increase in state coverage for medical bills for next year, which also would cause more spending by the government.

Following the announcement, some civic organizations opposed the rate hike, saying that it could be a burden for some households.

"The rate hike without promising better coverage is not fair," a coalition of civic organizations said in a press release. (Yonhap)