South Korea manual therapy claims drop as cryotherapy claims surge

Following the South Korean government's decision to transition manual therapy into a managed benefit category in July, insurance claims for the procedure have plummeted. Data submitted by five major indemnity insurers to lawmaker Kim Yun shows that manual therapy claims in August fell by 92% compared to the same month last year, with total claim amounts dropping 96%.

However, this regulatory shift has triggered a ‘balloon effect,’ where claims for other non-reimbursable musculoskeletal treatments are surging. Notably, claims for cryotherapy (cold spray therapy) rose by 218%, with the total amount jumping from approximately 4.5 billion won to over 14.4 billion won. Other physical therapies have also seen a 41% increase in total claims.

Concerns have been raised regarding fraudulent practices where medical institutions allegedly perform manual therapy alongside cryotherapy but claim only the latter to bypass regulations. Some reports suggest clinics have even requested patients to agree to state they only received cryotherapy if investigated by insurers. The effectiveness of the managed benefit system is expected to be a key issue in upcoming parliamentary audits, while the Korean Medical Association plans to file a constitutional complaint on August 22, arguing the system restricts medical autonomy and patient choice.