Taipei:Health Minister Shih Chung-liang has expressed concerns about the newly passed legislation that fully subsidizes National Health Insurance (NHI) premiums for most seniors, warning that it could increase the financial burden on younger generations.
According to Focus Taiwan, the amendments to the Senior Citizens Welfare Act were approved in the Legislature with a 60-39 vote by lawmakers from the opposition Kuomintang (KMT) and Taiwan People's Party (TPP). These amendments mandate the central government to cover NHI premiums entirely for individuals aged 65 and older whose total consolidated income falls under a 20 percent tax rate.
Since the 20 percent tax bracket is applicable only to taxable income exceeding NT$1.33 million (approximately US$40,950) this year, an estimated 83 percent of seniors would qualify for the subsidies, as per a health ministry estimate.
Minister Shih noted that Taiwan already offers some of the world's lowest health care premiums. He highlighted government statistics indicating that children aged 6 and younger pay an average of NT$8,522 annually in premiums, yet utilize an average of 27,509 NHI points. Seniors, on the other hand, pay around NT$9,912 yearly in premiums but use an average of 90,149 NHI points, which is significantly more than what they contribute.
The data demonstrates that both young children and seniors utilize more health care services than their premiums cover, with the shortfall being covered by the working-age population, who generally require less medical care and pay higher premiums.
Minister Shih also mentioned that the government had planned to allocate an additional NT$60 billion next year to support the NHI system, even before the bill's passage.
The Ministry of Health and Welfare stated that the subsidies would cost approximately NT$40 billion annually at current levels. The expense is expected to grow as the population ages and premium income declines due to a decreasing workforce.
Taiwan's NHI "global budget payment system" sets a fixed annual spending cap for each health care sector. Health care providers claim a specific number of NHI "points" for services rendered, and the monetary value of these points can fluctuate. If the claimed points exceed the budget, the value of each point decreases, reducing the reimbursement rate for medical institutions. In recent years, the quarterly value of 1 NHI point has varied between NT$0.90 and NT$1 for hospitals and NT$0.86 and NT$1 for clinics, depending on the region.
