Department of Health Minister Yaung Chih-liang (楊志良) said yesterday that health insurance premium rates would be raised within six months to help solve the National Health Insurance system’s shortfalls.
In an interview on a local radio station, Yaung Chih-liang reiterated the need for higher premium rates but said other measures to cut costs and increase revenues were being considered.
“I will do my best to carry out the government’s policy of premium adjustment for the National Health Insurance within six months,” Yaung said.
Prior to last Saturday’s local elections, Yaung said a premium rate hike was necessary but denied that there was a timetable for such a move. At the time, he said the premium, set at 4.55 percent of monthly salaries with a ceiling of NT$131,700, is much lower than what he described as the “reasonable rate” of 6.97 percent.
He warned that if the premium wasn’t raised the health system would be bankrupt in 10 years.
Those comments led some Chinese Nationalist Party (KMT) legislators to blame him for the party’s poor showing in Saturday’s polls.
Yaung said yesterday that he respected the lawmakers’ opinions and admitted that it had been “bad timing” to talk about hiking premium rates before the elections.
He said he would take “general responsibility” for it, but he did not back down from his stance that a rate hike was necessary, especially as Taiwan’s population continues to age.
A senior citizen costs approximately 3.3 times more in medical expenses than a younger person, he said, which was the main reason for the system’s financial problems.
Rising health care expenses averaging about US$1,000 per person per year have taken their toll on the health system’s finances.
The economically disadvantaged would suffer the most if the program shut down because the wealthy could afford private insurance alternatives, he said.
As for the timing of a rate hike, Yaung said he hoped to accomplish it within six months and would do all he can to make it happen, though other measures were also under consideration to ease the burden of rate hikes on the poor.
“The ultimate goal is for economically disadvantaged groups to pay less but enjoy the same health care protection as those who can afford insurance and help to pay more,” he said.
Yaung also said he would call on legislators to convince them that a rate hike is necessary.
The health insurance program’s accumulated deficit will reach NT$50 billion by the end of this year, he said.
ADDITIONAL REPORTING BY JIMMY CHUANG
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