The conflict over the double raise in National Health Insur-ance (NHI) premiums and co-payment fees has been going on for quite some time. The KMT and the PFP have decided to jointly propose an amendment to the National Health Care Insur-ance Law (
For an objective evaluation of the financial structure of the NHI, it is necessary to look at both income and expenditures. The NHI's income from premiums is calculated by multiplying beneficiary income with the premium rate.
Should the rate be fixed, the only way to increase income from premiums would be to raise beneficiary incomes.
The current average annual increase in beneficiary income varies roughly between 1 percent and 5 percent.
According to statistics from the Directorate General for Budget and Statistics, real average annual increases in beneficiary incomes have in recent years varied between 2 percent and 5 percent.
However, the public generally reports a lower income for insurance purposes, which would make the average annual increase in incomes reported for insurance purposes slightly lower than the real annual average increase.
Changes in medical technologies, an aging population, increa-sing life expectancies and many other factors result in constantly increasing medical expenditures, so the average annual increase in medical service payments will normally be far higher than the annual average increase in consumer prices.
After the introduction of the NHI, the annual increase in medical payments has varied between 2 percent and 11 percent, much less than in other countries. However, annual increases in consumer prices have only varied between zero and 2 percent.
By comparing data for each year, I discovered that the annual increase in medical service payments is higher than the annual increase in consumer prices, without exception.
The annual increase in medical service payments is far higher than the annual increase in consumer prices, the annual increase in the consumer price index is roughly equivalent to the annual average real increase in incomes, and the annual increase in real income is slightly higher than the annual average increase in income reported for insurance purposes.
A logical extrapolation from this logic shows that not only is it impossible to balance NHI income and expenditures, but the gap will increase every year.
Objective analysis shows that increases in NHI premiums are necessary.
The KMT-PFP opposition to such increases and their plan to amend the law and retract the right to adjust premium rates is stupid.
If premium rates are fixed and returned to their previous levels while medical service payments and expenditures instead rise every year, income will not cover expenditures.
To prevent the system from becoming bankrupt, the authorities must then respond by decreasing the scope of medical-service payments. This will lead to a deterioration in the quality of medical care.
When the quality of NHI medical services falls to a level that proves to be unacceptable to the public, it is not the Bureau of National Health Insurance that will be besieged at that point in time, but rather the Legislative Yuan -- which by that time would possess the right to decide premium rates.
Shen Fu-hsiung is a DPP lawmaker.
Translated by Perry Svensson
Recently, China launched another diplomatic offensive against Taiwan, improperly linking its “one China principle” with UN General Assembly Resolution 2758 to constrain Taiwan’s diplomatic space. After Taiwan’s presidential election on Jan. 13, China persuaded Nauru to sever diplomatic ties with Taiwan. Nauru cited Resolution 2758 in its declaration of the diplomatic break. Subsequently, during the WHO Executive Board meeting that month, Beijing rallied countries including Venezuela, Zimbabwe, Belarus, Egypt, Nicaragua, Sri Lanka, Laos, Russia, Syria and Pakistan to reiterate the “one China principle” in their statements, and assert that “Resolution 2758 has settled the status of Taiwan” to hinder Taiwan’s
Singaporean Prime Minister Lee Hsien Loong’s (李顯龍) decision to step down after 19 years and hand power to his deputy, Lawrence Wong (黃循財), on May 15 was expected — though, perhaps, not so soon. Most political analysts had been eyeing an end-of-year handover, to ensure more time for Wong to study and shadow the role, ahead of general elections that must be called by November next year. Wong — who is currently both deputy prime minister and minister of finance — would need a combination of fresh ideas, wisdom and experience as he writes the nation’s next chapter. The world that
Can US dialogue and cooperation with the communist dictatorship in Beijing help avert a Taiwan Strait crisis? Or is US President Joe Biden playing into Chinese President Xi Jinping’s (習近平) hands? With America preoccupied with the wars in Europe and the Middle East, Biden is seeking better relations with Xi’s regime. The goal is to responsibly manage US-China competition and prevent unintended conflict, thereby hoping to create greater space for the two countries to work together in areas where their interests align. The existing wars have already stretched US military resources thin, and the last thing Biden wants is yet another war.
As Maldivian President Mohamed Muizzu’s party won by a landslide in Sunday’s parliamentary election, it is a good time to take another look at recent developments in the Maldivian foreign policy. While Muizzu has been promoting his “Maldives First” policy, the agenda seems to have lost sight of a number of factors. Contemporary Maldivian policy serves as a stark illustration of how a blend of missteps in public posturing, populist agendas and inattentive leadership can lead to diplomatic setbacks and damage a country’s long-term foreign policy priorities. Over the past few months, Maldivian foreign policy has entangled itself in playing