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Taipei City loses subsidies case

"What can we do? We will just appeal with the Supreme Administrative Court. These types of cases take years to be resolved."

Lee Shu-te, Taipei City Government Secretariat director

The Taipei Administrative High Court yesterday ruled against the Taipei City Government and asked it to pay its health insurance subsidy debts of NT$7.2 billion (US$218 million) accumulated between 2003 and 2005 to the central government's Bureau of National Health Insurance (BNHI).

"The judges reached the decision because they believed that the Taipei City Government should take care of all insured individuals who work in the city regardless of where their household registrations are," said Chang Chung-wen (張瓊文), a spokeswoman for the Taipei Administrative High Court.

The Taipei City Government has 20 days to appeal to the Supreme Administrative Court after receiving the verdict from the court.

The case began in 2005 when the BNHI sued the city government for owing it a total debt of NT$7.2 billion in health insurance subsidies.

Taipei City Government said it would not cover people whose household registrations were not in the city. However, the BNHI said that as long as the insured individuals were working in the city, they were the city government's responsibility and liability had nothing to do with where their household registrations were.

Taipei City Government Secretariat Director Lee Sush-der(李述德) said the ruling was on an individual health insurance fee case in 2003, adding that the city government would appeal to the Supreme Administrative Court to fight for the interests of its residents.

"What can we do? We will just appeal with the Supreme Administrative Court. These types of cases take years to be resolved," Lee said.

There are several lawsuits outstanding between the central government and the city government regarding the health insurance program, Lee said.

In addition to yesterday's case, the two parties are still fighting cases relating to 2004 and 2005.

Lee said the city government had won cases filed before 2003, but the central government had filed appeals and the Supreme Administrative Court was reviewing the cases now.

Lee said the city government would continue the legal battle with the central government.

BNHI chief executive Chu Tzer-ming (朱澤民) said yesterday that it was too early for the bureau to declare victory, because the decision handed down was simply one round of the legal battle it has been having with the government over what the bureau says are years of owed payments.

"Since Taipei City and the BNHI hold opposing points of view on this matter, it can only be settled by the country's highest administrative court," Chu said.

In the meantime, the bureau and city government have come to an agreement whereby the city government would start paying NT$100 million to the BNHI every month, starting next January, he said.

"If the courts rule against us, we'll give the money back," Chu said.

Additional reporting by Angelica Oung
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