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    DOH chief freezes insurance premiums

    ON THE DEFENSIVE: Under pressure over insurance rates and drugs spending, the acting head of the health department vowed there will be no hikes for two years
    By Melody Chen
    STAFF REPORTER
    Friday, Nov 08, 2002, Page 2

    Department of Health acting head Twu Shiing-jer (涂醒哲) promised yesterday there will be no hike in national health insurance premiums for at least two years.

    The promise came at a meeting held by KMT Legislator George Lee (李全教) to discuss controversial issues surrounding the Bureau of National Health Insurance (BNHI).

    The meeting addressed the increase in insurance premiums, an alleged scam whereby hospitals ask the bureau to reimburse them ridiculous amounts for drugs and security problems associated with health integrated-circuit (IC) cards.

    The gathering comes in response to the allegation by independent Legislator Sisy Chen (陳文茜) that hospitals have been defrauding the government by charging it excessive fees for drugs.

    Chang Hong-jen (張鴻仁), general manager of the bureau, said in the meeting that the BNHI had launched an investigation into drug prices.

    "The investigation will finish by the end of this month. The bureau will be setting new drug-reimbursement schedules for hospitals according to the investigation results," Chang said.

    "The new drug-reimbursement prices will be made public in December and take effect at the beginning of next year," Chang added.

    According to Chang, the implementation of the new drug schedule will result in the largest reduction in the bureau's drug reimbursements for hospitals in its history.

    The bureau conducted its latest reduction in drug payments in 2000.

    "As a result, the bureau's yearly expenditure on drugs in 2000 dropped by NT$4.6 billion," Chang said.

    "I predict the bureau's yearly expenditure on drugs next year will slide by at least another NT$4.6 billion after the implementation of the new drug schedule," Chang said.

    The bureau's move to reduce drug costs is a reaction to its alleged wastefulness.

    Opposition lawmakers have been accusing the bureau of wasting money while its hike in insurance premiums in September caused a public outcry.

    Meanwhile, Lee told Chang of security concerns associated with new health IC cards that are replacing the old paper ones.

    The first group of IC cards has been distributed to about 340,000 people in Taipei and Penghu.

    The bureau planned to distribute the cards across the nation by March next year.

    Lee said he is worried that health data in the cards may be leaked to China.

    PFP Legislator Pang Chien-kuo (龐建國) shares his concerns.

    "The Analyst Technology Corporation [萌欣公司], which is responsible for producing IC-card recognition machines for hospitals, has close relationships with some Chinese companies," Pang said.

    Moreover, Lee said Chang Kung-pu (張公僕), project director for the cards, revealed in a speech in Beijing that manufacturing the cards is massive project.

    Chang Kung-pu is also the vice president of the Teco Electric & Machinery Co (東元電機) -- the company manufacturing IC cards for the bureau.

    Responding to the security concerns, Chang Hong-jen said the company has none of the BNHI's health data.

    "All health data of Taiwanese people are guarded under strict security in the BNHI's data center. None has been leaked," Chang Hong-jen said.

    "Even though the company manufactures IC cards for the bureau, it has absolutely no access to our health data," he added.

    Chang Hong-jen said the bureau has asked Chang Kung-pu about his speech in Beijing.

    "Chang Kung-pu was simply introducing Taiwan's national health insurance program and the health IC card project," Chang Hong-jen said.
    This story has been viewed 1567 times.

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