Institute calls for improved coverage for mental health

Patients suffering from depression increased by 35% from 2017 to 2021.

One in four Korean people experiences mental health problems at some point in their life, signalling insurance companies to expand their mental health coverage, reported the Korea Times.

Societal factors such as intense economic competition, education pressure, and rising social isolation are contributing to the growing mental health crisis in South Korea, according to the Korea Insurance Research Institute (KIRI). 

The number of patients suffering from depression increased by 35% between 2017 and 2021, rising from 691,164 to 933,481. During the same period, the average medical cost per person for depression grew from 439,501 won ($336) to 564,712 won.

Insurance companies are under increasing pressure to create products that address mental health care, as the prevalence of mental health issues, such as depression and anxiety, continues to rise. 

However, insurers are facing challenges due to the subjective nature of mental health diagnoses, which can complicate the validation of claims and increase the risk of moral hazard.

The government has prioritised mental health coverage for younger individuals, particularly those in their 20s and 30s, as they are the most vulnerable to mental health disorders. 

Whilst public insurance has gradually expanded mental illness coverage, private insurers have also revised policies to include more mental health benefits since 2016. 

However, private insurance products are still limited, often only covering long-term hospitalisation. A significant portion of non-reimbursable mental health treatments remains uncovered.

KIRI has called for greater cooperation amongst the government, insurers, and employers to expand mental health coverage and improve overall mental well-being. The institute suggests that insurance companies develop tailored products for specific occupational groups and adjust benefits based on research whilst implementing measures to prevent moral hazard.