A conclusion on whether National Health Insurance (NHI) fees can be reduced is to be made by the end of next month, the Ministry of Health and Welfare said yesterday in response to questions by legislators about the NHI reserve fund establishing a record high of more than NT$200 billion (US$6.06 billion).
Since the implementation of the second-generation NHI program in 2013, which initiated the collection of a supplementary premium, the NHI reserve fund has increased from NT$74.6 billion at the end of that year to NT$126 billion last year, and about NT$208.5 billion as of August.
Supplemental premiums were the main feature of the second-generation system.
They increased revenues for the financially troubled system by including non-salary income, such as dividends, professional fees and interest income, in health insurance premiums.
“It [the NHI reserve fund] can almost cover five months’ expenditures, already exceeding the one to three months of safety reserve regulated by the National Health Insurance Act (全民健保法),” Chinese Nationalist Party (KMT) Legislator Su Ching-chuan (蘇清泉) said at the legislature’s Social Welfare and Environmental Hygiene Committee yesterday morning.
Su suggested the ministry reduce the supplementary premium rate to give back to everyone covered by the system.
Minister of Health and Welfare Chiang Been-huang (蔣丙煌) said that although the NHI system has balanced its finances for the time being, the ministry’s predicts that its finances might become unbalanced again starting in 2017, so thoughtful deliberations must be carried out before making any adjustment to NHI fees.
“We have a mechanism in place for integrating two committees governing premium revenues and medical expenses” to coordinate the decisions of revenues and expenses with each other, Department of Social Insurance Director Chu Tong-kuang (曲同光) said. “So each year, the NHI Administration will propose a balanced fiscal plan to the NHI committee for discussion.”
The current premium rate is 4.91 percent and the supplementary premium rate is 2 percent, and the two rates are to be adjusted at the same time if NHI fees are to be lowered, Chu said, adding that regulations would have to be amended if only the supplementary premium rate is to be reduced.
Additional reporting by CNA
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