National Health Insurance (NHI) premiums are not likely to rise next year, Minister of Health and Welfare Chiu Tai-yuan (邱泰源) said, after an announcement that the agency's draft budget for next year could increase by up to 5.5 percent annually.
As a top-end increase would leave the reserve fund insufficient to fill the gap in funding, fears have grown that NHI premiums would rise.
The baseline budget for next year for the NHI is projected to be NT$936.81 billion (US$31.3 billion), the Ministry of Health and Welfare said.
Photo: Lin Hui-chin, Taipei Times
At the low end of the range of estimated growth, or a 2.942 percent rise, the budget would increase by NT$27.6 billion to NT$964.41 billion, with reserve funds enough for 1.31 months of expenditure, the ministry said.
At the high end of the estimate, or 5.5 percent, the budget would increase by NT$51.5 billion to NT$988.31 billion, with the reserve covering 0.96 months, it said.
The National Health Insurance Act (全民健康保險法) stipulates that the NHI reserve fund must cover at least one month of expenses.
The ministry is still uncertain whether additional funding would be required, as the budget is subject to variables and NHI finances remain in flux, Chiu said.
However, premium rates are not expected to rise, he added.
Experts from the medical industry recommend adopting the higher estimate to maintain financial resilience at hospitals and gradually raising premiums when necessary.
The government should also consider allocating NT$3 billion from the general budget to fill the gap, they said.
Next year's budget should be 5.5 percent larger to maintain the NHI system, said Taiwan College of Healthcare Executives director Hung Tzu-jen (洪子仁), who is vice superintendent of Shin Kong Hospital.
Setting individual budgets means that each hospital has to have the financial resilience to avoid the risk of reduced clinic hours or increased registration fees, while they have to have the long-term capacity to swiftly introduce new drugs and technology added to NHI coverage, Hung said.
The medical community says that premiums must be adjusted when necessary to sustain the NHI system and uphold the spirit of universal health coverage according to the reason it was designed 30 years ago, ie, to uphold individual responsibility and provide mutual aid, he said.
Additional reporting by Lin Hui-chin
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