State to cover up to 1.8 billion won in medical malpractice damages for essential care providers

The government will cover damages of up to 1.8 billion won ($1.17 million) arising from medical accidents in essential care, with the state paying insurance premiums in full.

The Ministry of Health and Welfare announced Tuesday it is formally launching this year's high-value liability insurance support project for essential medical fields.

Under the project, which began last year, the state covers insurance premiums to ease the financial burden on essential care providers and support compensation for patients harmed in medical accidents.

Starting this year, the program expands to cover specialists at maternal and child medical centers and dedicated specialists at emergency medical institutions.

The coverage ceiling for specialists has been raised from 1.7 billion won to 1.8 billion won, while the out-of-pocket burden on medical institutions has been reduced from 200 million won to 150 million won.

Of any malpractice damages awarded, the medical institution is responsible for the first 150 million won; the high-value liability insurance covers the remaining 1.65 billion won above that threshold.

The annual premium for the high-value liability insurance is 1.75 million won per specialist. Because the state covers the full premium, medical institutions can enroll at no cost.

Eligible specialists include obstetricians and gynecologists with a delivery record, dedicated specialists at maternal and child medical centers — covering obstetrics, gynecology and pediatrics — and specialists in pediatric surgery, pediatric thoracic surgery, pediatric cardiology and pediatric neurosurgery at hospital-level or higher facilities, as well as dedicated specialists at emergency medical institutions.

Dedicated emergency specialists eligible for coverage include not only emergency medicine physicians but also specialists from other departments assigned to emergency institutions.

Resident physicians at training hospitals are also eligible, covering residents in internal medicine, surgery, obstetrics and gynecology, pediatrics, cardiothoracic and vascular surgery, emergency medicine, neurosurgery and neurology.

For residents, the training hospital is responsible for the first 20 million won in malpractice damages; the liability insurance covers the remaining 310 million won above that amount.

The annual premium of 300,000 won per resident is fully covered by the state. Training hospitals that already carry liability insurance covering residents in the eight eligible specialties may also apply for a reimbursement equivalent to the state subsidy — 300,000 won per resident.

For dedicated emergency specialists participating in the pilot program to reform the emergency patient transport system, coverage will be backdated to March, when the pilot began, provided they complete enrollment in the high-value liability insurance by the end of July.

To facilitate smooth resolution of minor medical disputes, the program also provides a separate payment of up to 10 million won in damages for medical accidents involving enrolled practitioners.

If an enrolled practitioner faces criminal charges related to a medical accident, the program additionally covers legal consultation fees and the victim's mental health treatment costs.

The Korean Medical Association's Medical Indemnity Mutual Aid Association has been selected as this year's insurance provider.

Medical institutions may apply to enroll in the high-value liability insurance from Thursday through Nov. 30. Those renewing a policy from last year may apply directly to the insurer between Oct. 1 and Nov. 30.

Health and Welfare Minister Jeong Eun-kyeong said the high-value liability insurance support project "is expected to benefit both medical professionals and patients alike," adding that the ministry would gather input from all sectors to establish subordinate regulations under the Medical Dispute Mediation Act and refine the insurance system to solidify the compensation framework.