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Govt unifies JKN insurance coverage

Jakarta Post - May 13, 2024

Jakarta – After a years-long evaluation, President Joko "Jokowi" Widodo has decided to consolidate the classification of National Health Insurance (JKN) services in an effort to avoid deficits.

The newly issued Presidential Decree No. 59/2024 mandates the establishment of a standardized hospital class (KRIS) to replace the existing three classes under the JKN universal health scheme, and that all hospitals in the country must implement the KRIS classification system by June 30, 2025.

"We are still waiting for the technical regulations to implement KRIS," said Rizky Anugrah Putra, a spokesperson with the Healthcare and Social Security Agency (BPJS Kesehatan) that manages the JKN, as quoted by Kompas.com.

While the new decree does not contain a provision that sets premiums for policyholders, "The President has emphasized that there will not be an increase in premiums in 2024," Rizky said.

Established in 2014, BPJS Kesehatan is tasked with managing and delivering the JKN scheme as universal health coverage.

Medical journal The Lancet once described JKN as the largest single-payer health insurance system in the world.

Poor management related to standardized medical treatments and medication, however, caused the insurance to run a deficit, until the COVID-19 pandemic emerged in 2020.

The insurer's burden shifted during the pandemic, as fewer people were visiting hospitals and other health facilities. BPJS Kesehatan was back in the red last year as more people flocked to hospitals, booking a deficit of Rp 7.4 trillion (US$473.8 million).

The plan to scrap the JKN classes had been in the pipeline for years to cut costs and to promote equitability under the universal health scheme.

JKN currently covers nearly 270 million people, or 96.7 percent of the population.

Source: https://www.thejakartapost.com/indonesia/2024/05/13/govt-unifies-jkn-insurance-coverage.htm