• KDI Journal of Economic Policy
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• v.30 no.2
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• pp.99-128
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• 2008

Nearly all Koreans are insured through National Health Insurance(NHI). While NHI coverage is nearly universal, it is not complete. Coverage is largely limited to minimal level of hospital and physician expenses, and copayments are required in each case. As a result, Korea's public insurance system covers roughly 50% of overall individual health expenditures, and the remaining 50% consists of copayments for basic services, spending on services that are either not covered or poorly covered by the public system. In response to these gaps in the public system, 64% of the Korean population has supplemental private health insurance. Expansion of private health insurance raises negative externality issue. Like public financing schemes in other countries, the Korean system imposes cost-sharing on patients as a strategy for controlling utilization. Because most insurance policies reimburse patients for their out-of-pocket payments, supplemental insurance is likely to negate the impact of the policy, raising both total and public sector health spending. So far, most empirical analysis of supplemental health insurance to date has focused on the US Medigap programme. It is found that those with supplements apparently consume more health care. Two reasons for higher health care consumption by those with supplements suggest themselves. One is the moral hazard effect: by eliminating copayments and deductibles, supplements reduce the marginal price of care and induce additional consumption. The other explanation is that supplements are purchased by those who anticipate high health expenditures - adverse effect. The main issue addressed has been the separation of the moral hazard effect from the adverse selection one. The general conclusion is that the evidence on adverse selection based on observable variables is mixed. This article investigates the extent to which private supplementary insurance affect use of health care services by public health insurance enrollees, using Korean administrative data and private supplements related data collected through all relevant private insurance companies. I applied a multivariate two-part model to analyze the effects of various types of supplements on the likelihood and level of public health insurance spending and estimated marginal effects of supplements. Separate models were estimated for inpatients and outpatients in public insurance spending. The first part of the model estimated the likelihood of positive spending using probit regression, and the second part estimated the log of spending for those with positive spending. Use of a detailed information of individuals' public health insurance from administration data and of private insurance status from insurance companies made it possible to control for health status, the types of supplemental insurance owned by theses individuals, and other factors that explain spending variations across supplemental insurance categories in isolating the effects of supplemental insurance. Data from 2004 to 2006 were used, and this study found that private insurance increased the probability of a physician visit by less than 1 percent and a hospital admission by about 1 percent. However, supplemental insurance was not found to be associated with a bigger health care service utilization. Two-part models of health care utilization and expenditures showed that those without supplemental insurance had higher inpatient and outpatient expenditures than those with supplements, even after controlling for observable differences.

• Journal of Preventive Medicine and Public Health
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• v.30 no.2 s.57
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• pp.437-461
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• 1997

Because of a significant improvement in the economic situation and development of scientific techniques in Korea during the last 30 years, the life expectancy of the Korean people has lengthened considerably and as a result, the number of the elderly has markedly increased. Such an increase of the number of aged population brought about many social, economic, and medical problems which were never seriously considered before. This study was conducted to assess the trend of medical care utilization and medical expenditure of the elderly. The data of each patient in the study were taken from computer database maintained for administrative purpose by the Korea Medical Insurance Corporation. The study population was 132,670 who were 60 years old or more and registered in Korean Medical Insurance Corporation from 1989 to 1993. The study subjects were predominantly female(56.3%) and 10,000-20,000 Won premium group(50.6%). The following are summaries of findings : The total increase of the number of inpatient cases was 40.5% from 1989 through 1993. The average annual increase was 3.7% in inpatient medical expenditures per case, 4.4% in inpatient medical expenditures per day and 0.08% in length of stay per case from 1989 through 1993. Cataract was the most prevalent disease of 10 leading frequent diseases in all ages from 1989 through 1993. The case mix in 1993 compared to 1989 revealed that cataract and ischemic cerebral disease were increased whereas essential hypertension and pulmonary tuberculosis were decreased . The average annual increase of medical expenditures was 3.8% in general hospitals, 6.3% in hospitals and 2.4% in clinics. From 1989 through 1993, medical expenditures used by high-cost patients accounted for about 14% to 20% of all expenditures for inpatient care, while they represented less than 2.5% of the elderly population. Time series analysis revealed that total medical expenditures and doctor's fee for inpatient will be progressively increased whereas drug expenditures for inpatient will be decreased. And there will be no change in length of stay. Based on the above results, the factors increasing medical cost and utilization should be identified and the method of cost containment for the elderly health care should be developed systematically.

• Journal of Preventive Medicine and Public Health
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• v.26 no.4 s.44
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• pp.614-627
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• 1993

It is well known that a physician's personal characteristic affects his practice pattern. Furthermore, a physician's specialty has powerful influences on his practice pattern. However, despite the fact that specialization has received the most attention for its influence on physician's service behavior, few studies have been conducted on the variations of contents and volume of physician's services. This study has intended to identify factors influencing the practice variations according to various physician characteristics. There are some other evidences that medical care providers are different in using of health services and resources in Korea. Four physician characteristics were selected for the analysis, two demographical factors, age and sex, and two practice factors, place of practice and medical specialty. Also, three indicators of service amount (total amount of insurance claim bill, number of visits per case, number of prescriptions per case) were selected. From the pool of insurance claims for ambulatory care received by the Korean National Federation of Medical Insurance(NFMI), 84,898 cases were randomly sampled. In the meantime using physician database of NFMI, 613 general practitioners (GP), 107 regular family physicians (FP), 483 'grandfather' family physicians(GFP), and 1,157 specialist practitioners(SP) were randomly sampled. Their different practice contents were compared concerning the specialty, age groups, sex, and practice sites (urban-rural) Specialist physicians tend to provide more costly care than do generalists. General practitioners and family physicians usually make fewer following visits and prescriptions. Age is also the important factor in determining the amount of services, which is highest at the physician's age group of 40's. Female doctors and urban practitioners use much more resources than their counterparts respectively. Research findings suggest that physician's characteristics particularly the specialty can affect practice patterns and resource utilizations. Other characteristics such as age and sex are not controllable but physician's specialty is relatively easily controllable during the entire phases of policy implementation. This is all the more true in the individual's initial decision of his specialty. Specialization therefore should receive policymaker's attention for its potential influence on medical care utilization and health care expenditure.

• Journal of Korean Public Health Nursing
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• v.10 no.2
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• pp.15-36
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• 1996

It is clear that the women's participation in social activity is dramatically increased in civilian field as well as military profession. Because of the characteristics of military nursing service, there are many difficulties. Frequent move, medical insurance, baby care. and the education are typical forms of difficulties for nurse officers in the military. The purpose of this research is to contribute to the perfect execution of nursing service. guarantee the active attitude for research and improve the combat strength by solving those private and economic problems. The method of research was analysis of question survey and the review of related literatures. The subject of research was 300 active nurse officers who work at the Army Hospitals. The survey was conducted 14 days from Oct 15 to Oct 28. The collected data was processed by computer using SPSS(Statistical Package of Social Science). Frequencies and percentages were used to examine the demographic characteristics of subject, and T-test was also used in the case of necessity. The result showed as follows; As the general characteristics of subject group; 28.7 years of average age, 73.6 months of service period, 63.4% of married. In regard of specialty; General 57.7%. Intensive Care 12.7% and Psychiatries 8.8%. The dissatisfactory factors about military welfare system were the difficulties in children education (36.9%). disadvantages on the civil medical insurance system (27.3%), and little chance of self education and development (21.5%). The problems in performing their duties were shown as dwelling instability due to frequent move (67.7%), and bring up children (14.2%). The reasons for resigning their job were shown as the instability of living status (64.2%), bring up children (18.8%) and dissatisfaction to the service (11.2%). The residential status was shown that military offered houses (45.2%), rental houses (29.3%) and own houses(14.64). The average numbers of moving residencies were; 3-4 time(34.6%), less than 2 times(33.1%), and 5-7 times(21.5%). Higher than 94.7% of the subject group spent more than 50.000 Won. In regard of education, they wanted to attend graduate school with their own expense(26.2%), computer science(20%) and Office Job Training(20%). The ways of taking care of children were mother-in-low(49.6%), mother(14.6%), and others(25%). The average expenditure per month for children were 20-30 hundred Won(44.2%), 10-20 hundred Won(25%) and 30-40 hundred Won(22.3%). The places of children care selected were public or occupational care center(56.2%), religious organization(20.8%), and other center managed by social organizations(10.4%). The result of survey for general welfare of nurse officers are as follows; By and large they seem to be satisfied with their job. however. there are some dissatisfactory factors. They are children care facilties, promotion. income. welfare facilities. disadvantage in medical insurance and civil hospitals. house purchase. unfair chances in specialty training. influence on promotion by educational status. and insufficient role for their children and husbands. As conclusion. the recommendations for improving nursing service are as follows; 1. Children care center managed by occupation 2. Dormitory system for children by military personnel 3. Equal opportunities in education according to ability 4. Reasonable moving price according to the distance and scope of family and extra allowance

• Quality Improvement in Health Care
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• v.12 no.1
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• pp.40-51
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• 2006

Backgrouds : This study was performed to compare the satisfaction levels for health examination programs provided by between the Korea National Health Insurance Corporation (KNHIC) and private healthcare organizations in Korea. We investigated factors associated with the satisfaction level for the KNHIC health examination. Also, factors explaining for the additional receipt of private healthcare organization's examination were identified. Methods : A self-administered questionnaire survey was conducted in June 2004 with 250 beneficiaries of the KNHIC industrial workers' program and 100 beneficiaries of the KNHIC selfemployed program. A total of 297 completed the questionnaire, including 213 (85.2%) and 84 (84.0%) for each insurance program. Ten questions measuring satisfaction levels for each examination program were rated on a scale ranging from 1 (strongly unsatisfied) to 5 (strongly satisfied). Results : Among the subjects receiving both examinations, the mean satisfaction level for the KNHIC examination (3.07) was significantly lower than that for the private healthcare organization's examination (3.50) (p<0.05). The KNHIC examination showed lower satisfaction for all of the 10 items than the counterpart. In particular, the KNHIC examination had the scores of lower than 3.0 for the items reflecting post-examination management services. According to the multiple regression analysis results, the satisfaction for the KNHIC examination was positively associated with the positive attitude toward health examination(${\bullet}$,=0.38, p<0.00). The logistic regression results showed that the likelihood of receiving the private healthcare organization's examination in addition to the KNHIC examination increases as the respondents were less healthier(OR=0.29, 95% CI = 0.10¢¶0.84), the satisfaction level for the KNHIC examination decreased(OR=0.46, 0.28¢¶0.75) or the attitude toward health examination was more positive (OR=2.56, 1.31¢¶5.12). Conclusion : The relatively low satisfaction level for both examination programs suggests that there's ample room for improvement of health examination services in Korea. The negative association between additional receipt of private healthcare organization's examination and satisfaction level for the KNHIC examination implies that the improvement of the satisfaction for the KNHIC examination would help to reduce the national expenditure spent on the additional examination.

• Korean Journal of Social Welfare
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• v.39
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• pp.157-179
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• 1999

This study is an empirical research to analyze how many private income transfers in Korea decrease poverty rate, to compare the effects of private income transfers' decreasing poverty rate with income classes. This study has utilised the Family Income and Expenditure Survey to estimate the poverty ratio in urban areas and Unemployment Household Survey which Korea Institute for Health and Social Affairs has investigated at 1998. Majour findins are these. First, Sizes of private transfers incomes are much than that of public transfers incomes. The rates in receiving private transfers income are ten times higher than that in receiving public transfers income among urban worker's household. The mean of private transfer income are about six times larger than that of public transfer income among urban worker's household. Second, the effects of private income transfers' reducing poverty rates are not large. After private transfers, urbarn workers' households are about 10 per cent away from its poverty line, and unemploy households are only 3 per cent away from its poverty line. Third, especially, private income transfers are hardly reducing poverty rates among extreme poverty class. After private transfers, urban workers' households which their incomes are within low 5%, are not away from its poverty line at all.

• Journal of Preventive Medicine and Public Health
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• v.38 no.4
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• pp.391-400
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• 2005

Objective : This study examined the socioeconomic differentials for the health and health related behaviors among South Korean middle school students. Methods : A nationwide cross-sectional interview survey of 3,449 middle school second-grade students and their parents was conducted using a stratified multi-stage cluster sampling method. The response rate was 93.3%. The socioeconomic position indicators were based on self-reported information from the students and their parents: parental education, father's occupational class, monthly family income, out-of-pocket expenditure for education, housing ownership, educational expectations, educational performance and the perceived economic hardships. The outcome variables that were measured were also based on the self-reported information from the students. The health measures included self-rated health conditions, psychological or mental problems, the feelings of loneliness at school, the overall satisfaction of life and the perceived level of stress. The health related behaviors included were smoking, alcohol drinking, sexual intercourse, violence, bullying and verbal and physical abuse by parents. Results : Socioeconomic differences for the health and health related behaviors were found among the eighth grade boys and girls of South Korea. However, the pattern varied with gender, the socioeconomic position indicators and the outcome measures. The prevalence rates of the overall dissatisfaction with life for both genders differed according to most of the eight socioeconomic position indicators. All the health measures were significantly different according to the perceived economic hardship. However, the socioeconomic differences in the self-rated health conditions and the psychosocial or mental problems were not clear. The students having higher socioeconomic position tended to be a perpetrator of bullying while those students with lower socioeconomic position were more likely to be a victim. Conclusions : The perceived economic hardships predicted the health status among the eighth graders of South Korea. The overall satisfaction of life was associated with the socioeconomic position indicators. Further research efforts are needed to explore the mechanisms on how and why the socioeconomic position affects the health and health related behaviors in this age group.

• Journal of Preventive Medicine and Public Health
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• v.38 no.1
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• pp.107-116
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• 2005

Objectives : We analyzed the changes from 1996 to 2002 in distributive equity of the contribution burden in the Korean National Health Insurance. Methods : The study subjects were a total of 8,923 employee households and a total of 7,296 self-employed households over the period from 1996 to 2002. Those were the households meeting the two criteria as completing each annual survey and having no change in the job of head of the household during that period from the raw data of the Household Income and Expenditure Survey annually conducted by the Korean National Statistical Office. The unit of analysis was a household, and this was the standard for assessing the contribution that is now applied on a monthly basis. Deciles Distribution Ratio, Contribution Concentration Curve and Contribution Concentration Index were estimated as the index of inequality. Multiple regression analysis was conducted to compare the annual ability-to-pay elasticity of the contribution to the reference year of 1996 for three groups (all households, the employee households, and the self-employed households). Results : For the index of inequality, the distributive equity of contribution was improved in all three groups. In particular, the employee group experienced a substantial improvement. Using multiple regression analysis, the ability-to-pay elasticity of the contribution in the employee group significantly increased ($\beta$=0.232, p<0.0001) in the year 2002 as compared to the reference year of 1996. The elasticity in the self-employed group also significantly increased ($\beta$=0.186, p<0.05), although its change was smaller than that in the employee group. Conclusions : The employee group had a greater improvement for the distributive equity of the contribution burden than the self-employed group. Within the observation period, there were two important integration reforms: one was the integration of 227 self-employed societies in 1998 and the other was the integration of 139 employee societies in 2000. We expected that the equity of the contribution burden would be improved for the self-employed group since the integration reform of 1998. However, it was not improved for the self-employed group until the year 2000. This result suggests that capturing exactly the beneficiaries' ability-to-pay such as income is the precedent for distributive equity of the contribution burden, although a more sophisticated imposition standard of contribution is needed.

• Korean Business Review
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• v.19 no.2
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• pp.231-259
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• 2006

Performance-based budgeting(hereafter PB2) is supposed to improve efficiency and effectiveness of public organizations. Governmental PB2 is based on output flow rather than input flow. Since 1990s, many OECD nations including New Zealand and the United States have been changing their budget system to PB2. The Korean Government has been using input-based budgeting focusing on the size of expenditures. In 1999, The Ministry of Planning and Budget(hereafter MPB) conducted pilot projects for divisions or agencies of governmental departments for the purpose of improving efficiency in expenditure, rationalizing budget allotments, and inducing budget savings. However, performance budgeting may also have problems in terms of measurement and application. Due to the fact that public goals are abstract and may vary, it is difficult to induce performance indicators from public goals. There also seem not to be any performance indicators which correspond with the conditions of desirable indicators, such as validity, reliability, clarity, practicality, controllability and so on. In terms of applying an original budgeting plan, the difficulty of linking performance and budgeting, the appearance of unintended negative effect and externalities, and the repulsion of subordinated agencies are expected. Now days, local government is going to introduce PB2. Same problem may happen in the local government. And Therefore, the objectives of this paper are to introduce PB2 onlocal government and review a alternative strategy with the purpose of smoothly settling performance budgeting on local government. That is the linkage of Balanced Scorecard(BSC) and PB2.

• Korean Journal of Social Welfare
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• v.38
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• pp.7-32
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• 1999

Providing the income support program for people under the poverty level has been regarded as the basic obligational role of modern government. The target population of this program should include all the poor who are unable to maintain the minimum health and decency level with their own income. The minimum living cost, however, varies within a country because there are regional differences in consumer price and the mode of living. The current program does not count for the regional differences, leaving a significant portion of Seoul's poor needy people being ineligible for this public care. Recognizing these regional differences, this paper attempts to estimate the minimum living cost in Seoul area, comparing it to the national one. It employs the data and method that the Korea Institute of Health and Social Affairs adopted in its 1994 study, since it has been served as a basis of the current public assistance program. The minimum cost of living in Seoul is estimated to be \887,611 per month for a 4-person household. It is 1.33 times greater than the national monthly minimum of \666,684. Based upon the '94 urban household expenditure survey data, some 5.9 percent of Seoul's population, 636,132 people, are found to be under the Seoul's minimum living level. This number is 5.2 times greater than those 123,304 people who are eligible for the current public assistance program in Seoul.