The Bureau of National Health Insurance (BNHI) yesterday reported that its quarterly fund earnings turned positive for the first time in three years, showing that a recent increase in the insurance premium rate has contributed to the gradual closing of the fund’s deficit.
On April 1, the premium rate was raised to 5.17 percent from the previous 4.55 percent of the insurer’s registered insurance subscription.
Aside from the premium rate hike, the highest insurance subscription level was also raised from NT$131,700 to NT$182,000 in April.
RESPONSIBILITIES
Employees in the private sector are responsible for 30 percent of the cost, while the government shoulders 10 percent and the employer pays the remaining 60 percent.
The rate increase had been touted by government officials as the optimal way to solve the healthcare system’s debt problem.
REVENUE UP
Yesterday’s quarterly report showed that in the second quarter of this year, the NHI fund took in revenues of NT$116.1 billion (US$3.6 billion), which was NT$11.4 billion more than in the first quarter of this year.
This quarter’s net gain of NT$3.2 billion are the first positive earnings for three years and have helped to fill some of the fund’s financial deficit, which now stands at NT$57.2 billion.
RECOVERY
The bureau remains optimistic that the remaining deficit can be recovered if the economy continues to recover and the national income continues to rise as more people find jobs in a better market, said Lee Shao-chen (李少珍), chief of the bureau’s finance section.
Before the rate hike, the health insurance system had recorded a deficit of NT$60.4 billion in the first quarter. The bureau estimated that if nothing was done about the deficit, it would double to NT$101.5 billion by the end of the year.
Lee said that the premium hike would result in an increase of NT$52.2 billion in annual premium revenues and thus help ensure the financial stability of the national insurance program for at least two years.
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