Analysis of the Pregnancy- and Childbirth-Related Medical Expense Subsidization Program in South Korea

Abstract

The Pregnancy- and Childbirth-Related Medical Expense Subsidization Program (PCMESP) is by far the most developed, the most financially extensive, and the most universal of all pregnancy support programs. This study provides an in-depth analysis of the PCMESP, now known more commonly as the Citizens’ Happiness Card Program (formerly the “Goun-Mom Card”) to the public, in terms of how effectively it has met its objectives: reducing the financial burdens on women related to pregnancy and childbirth and improving the birth outcomes. The results of this study show that although PCMESP has been ineffective on the whole at reducing the medical costs of pregnancy and childbirth, the PCMESP subsidy of KRW 300,000per woman has significantly reduced the proportion of women giving birth prematurely. Thus, the program has been relatively successful in ensuring the birth of more healthy babies.