Issues and Implications of Korea’s Long-term Care Insurance Payment System

Abstract

The payment system of long-term care insurance for the elderly shows the direction in which the long-term care policy is headed, and acts as the main means of inducing the provider to select the management strategy and determine the type of service used by the user according to the direction proposed. In particular, at this time, when most of elderly long-term care is provided through private providers, the fee payment system so important that the success the long-term care insurance depends on it. In this article, we will examine the rationality of the payment system and the rationality of the payment compensation system of long-term care insurance as to whether it is operating in accordance with the purpose of care. The rationality was examined in terms of the equity of home and facility benefits according to the degree of care needs, the equity of the number of benefits types by long-term care class, and the equity of the number of service types by service type through the long-term care benefit price standard. Based on its findings, this study suggests aligning reimbursement with the goal of long-term care, reducing the difference in the monthly use limit between at-home care and facility-based care, strengthening the differential compensation by grade of facility-based service and home-visit service, improving reimbursement equity by taking into account the facility benefit and short-term protection, installation of facilities in a day and night care, and the resource input of the personnel standard, and introducing various additive systems to improve the quality of services.