Car insurance costs for herbal medical treatments double in five years

[Photo by Yonhap]

The cost of traditional Korean medical treatments covered by car insurance in South Korea has more than doubled to nearly 1.5 trillion won ($1.09 billion) annually over the past five years as minor car accident patients flock to these treatments, data showed on Sunday.

According to data obtained by Representative Song Eon-seog of the People Power Party from the Health Insurance Review and Assessment Service, the cost of traditional Korean medical treatments for car accident victims amounted to 1.49 trillion won last year, up 108.5 percent from 713.9 billion won in 2018.

The proportion of minor injury patients using traditional Korean medical treatments has significantly increased, in particular.

According to a major non-life insurance company, minor injury patients using traditional Korean medical treatments accounted for 70 percent of car accident patients last year, up from 46 percent in 2018.

Some traditional Korean medicine hospitals and clinics are criticized for their indiscriminate treatment practices, with uniform set treatments being a prime example.

They recommend a set treatment that simultaneously administers six treatments, including acupuncture, cupping, moxibustion, herbal acupuncture, Chuna manual therapy, and thermal meridian therapy, to minor car accident patients, which increases insurance payouts and straining car insurance finances, industry insiders note.

According to the insurance company, the number of claims for traditional Korean medicine set treatments increased from about 100,000 in 2018 to over 500,000 recently.

Another factor is the future treatment cost payments given as part of settlement money by insurance companies.

When patients visit traditional Korean medicine hospitals and clinics, the longer consultation and hospitalization periods compared to Western medicine can enhance their negotiating power for settlement amounts.

According to the Korea Insurance Development Institute, the average number of consultation days per person for traditional Korean medicine users was 18.9 days last year, more than double the 8.3 days for those who did not receive traditional Korean medical treatments.

“The longer patients stay in traditional Korean medicine hospitals and clinics, the more money these institutions make, the more significant the medical expenses, and the higher the settlement amounts patients can receive, thereby affecting car insurance finances,” said Kim Dae-hwan, an economics professor at Dong-A University. “There should be a more refined manual for treatment and insurance payments for minor injury patients.”