Starting March 1, 2023, parents opting for cesarean section deliveries will experience a significant change as their medical expenses will now be fully covered by the national health insurance scheme. The decision aims to address the high rate of cesarean births and reverse the country's declining birth rates, leading to hopeful projections for an increase in the number of births.
According to the Ministry of Health and Welfare, last year's cesarean delivery rate constituted 64.3% of all births, reflecting the reality of many parents preferring this method due to various circumstances. "This proposal reflects voices from the field calling for proactive measures to help children the need," stated Lee Jung-kyu of the Ministry, highlighting the pressing requirement for government support as discussions about the country’s birth rates continue.
The policy, embedded within recent amendments to the National Health Insurance Act, will lower the 5% patient share for cesarean deliveries to 0%, aligning it with the patient share for natural births. Lee Jung-kyu also emphasized the initiative as a bold step responding to the parental voices needing substantial assistance as they navigate the costs of childbirth.
This initiative is being implemented at a time when South Korea has seen monthly birth numbers transitioning from declining to increasing, with significant growth noted since April and May of the previous year. By September 2022, there were 178,600 babies born, marking an increase of 0.7% from the same period the previous year.
With cesarean sections accounting for more than half of the deliveries, the government's intervention seems not only timely but necessary. Industry watchers are optimistic this trend can lead to higher birth rates amid fears of sustained population decline. By 2023, projections estimate continued improvement due to birth subsidies and favorable policies aimed at reducing the financial burden on prospective parents.
Insurance companies are also responding to this shift, introducing innovative products focusing on childbirth and pregnancy-related expenses. An example is Hanwha Insurance’s women’s health insurance, which offers expanded coverage for post-childbirth complications and provides support for families throughout maternity-related events, including maternity leave insurance options.
Reported by The Economist, Hanwha Insurance has experienced marked success, with the sales of its women’s health insurance products achieving significant figures since their introduction, accounting for 20% of the company’s insurance sales total as of the second half of 2023. The CEO noted, "This marks significant progress, positively impacting women who have been traditionally underserved by existing insurance offerings."
The need for specialized insurance products catering to pregnancy and childbirth is underscored by current trends; existing insurance policies seldom cover the full scope of maternity-related expenses. Instead, they typically provide limited benefits covering medical emergencies arising during pregnancy. Experts are noting the increased necessity for comprehensive policies addressing both pregnancy complications and childbirth expenses.
Insurance researchers indicated there’s mounting demand for pregnancy-and-birth-related insurance products which translates to potential market expansion. Given the trend of increased maternal age and rising diagnoses of pregnancy-induced conditions, the need for innovative insurance products will likely continue to rise.
Consequently, industry professionals suggest there’s ample opportunity for insurers to develop maternity-related products effectively tied to existing policies to ease the financial strain on families. This could include incorporating child insurance products or developing new offerings targeting specific maternal health needs.
Lee Jung-kyu expressed hope, stating, "Growing maternal and child health needs offer the insurance market promising developments, enabling families to protect their financial future more adequately during this significant life stage." The shift toward more inclusive coverage options is set to build greater support for families wishing to welcome children amid shifting societal structures and economic pressures.
Through these modernized insurance policies and government reforms, South Korea seeks not just to manage the immediate issues of childbirth but also to establish frameworks supporting the overall well-being of families, contributing to broader demographic goals of reversing declining birth rates and enhancing the country’s future.