Taipei:Opposition lawmakers in Taiwan passed a legal amendment on Friday requiring the central government to fully subsidize National Health Insurance (NHI) premiums for certain seniors. This move comes just six weeks before local elections.
According to Focus Taiwan, the amendment to Article 22 of the Senior Citizens Welfare Act was proposed by lawmakers from the opposition Kuomintang (KMT) and Taiwan People's Party (TPP). It passed with a vote of 60 to 39, with opposition parties uniting to support the revised motion.
The amendment mandates that the government covers the full NHI premiums for seniors whose total consolidated income, as assessed by tax authorities, is below the tax filing threshold or taxed at a rate below 20 percent. Currently, a net consolidated income of NT$1.38 million or less is taxed below this rate, meaning seniors aged 65 and older within this income range will qualify for the subsidy.
The TPP caucus noted that this policy fulfills a campaign promise made by its founding chairman Ko Wen-je during his 2024 presidential campaign. Ko had previously introduced similar subsidies for seniors' NHI premiums while serving as Taipei mayor.
Despite the legislative success, Health Minister Shih Chung-liang expressed concerns that the amendment could undermine the NHI system's sustainability. He warned that departing from the principle of paying based on ability could lead to intergenerational unfairness and financial strain, potentially increasing premiums or requiring more tax revenue for health insurance at the expense of other welfare programs.
The TPP caucus estimates that the amendment will increase government spending by nearly NT$39 billion annually, based on a monthly subsidy of NT$826 per senior. Shih cautioned that as Taiwan's population continues to age, the financial burden could grow, threatening the system's long-term viability.
