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National Health Insurance to raise NT$5 billion next year to improve the national healthcare system and increase standard deductions of supplementary insurance to NT$20,000 on New Years Day 2016

  • Data Source:Ministry of Health and Welfare
  • Created:2015-10-15
  • Last Updated:2017-01-11

The Ministry of Health and Welfare (MOHW) has announced that starting from January 1, 2016, there will be a system-wide relaxation of the supplementary health insurance premium deduction standard. This includes interest, dividends, rent, and business income. Single limit deductions will be increased from the current NT$5,000 to NT$20,000. 

As people from most walks of life have recently been shown that the financial situation of the National Health Insurance (NHI) is in good standing, the public expects that these supplementary health insurance premium reduction measures will benefit everyone. This, in turn, will bring financial balance and reform to the healthcare system. Premier Mao of the Executive Yuan has attached great importance to and promised a review of the proposal as soon as possible. This led to the Ministry of Health conducting vigorous deliberations on the matter. After intensive research, it was decided to relax the previous standard of supplementary insurance deductions. In addition, NHI funding would be used to increase medical staff salaries and strengthen the quality of care to alleviate the burden on vulnerable populations. 

To alleviate the health insurance burdens on vulnerable populations in the past, the MOHW relaxed the supplementary insurance rate standard to basic income for part-time and middle-income earners (currently NT$20,008). To create an equitable encumbrance and care for the vulnerable, standards for part-time income earners were relaxed for all insurable people and issues. 

The MOHW stated that they understood the public's expectation for an alleviation of supplementary insurance costs. However, due to statutory adjustment mechanisms for insurance rates, there are no direct means of adjusting supplementary insurance fee rates. In consideration of the current financial situation of the NHI and in response to the public interest, the current deduction standard of NT$5,000 will be increased to NT$20,000 in all areas. In 2014, for example, supplemental premiums were required to be paid by about 4.26 million people. After the adjustment, an estimated 80% (3.42 million people) will benefit, which amounts to a financial decrease of approximately NT$4.2 billion. 

The MOHW went on to state that more resources have already been used following the improvement of NHI finances for a sound healthcare system and for reviews to improve payment standards (e.g. balancing acute medical care and specialists). In recent years, the MOHW has put great effort into protecting the working conditions of healthcare workers, providing the public with a good medical environment, and improving the labor problems of rural areas. Pursuant to meeting manpower needs for the five major physician types as recognized the world over (internal, surgical, pediatric, OB/GYN, and emergency medicine), the ministry has raised pay for the five major specialties, improved physician specialization training posts, reformed specialist training methods, and simplified clinical workflow in order to reduce residency workload. This multifaceted approach is hoped to optimize the residency training environment, thus allowing for an increase in manpower for medical specialists. 

The MOHW has also amended certain provisions of the Medical Care Act and standards for medical foundation personnel annual income surpluses, including: food courts, parking lots, investment of company profits, and donations and grants as well as non-medical income balances. Priority should be given to raising staff salaries and for manpower recruitment. In addition, the changes require legal incentive for public donation regulations, board member information, and situations of transactions with related parties. Medical foundations have been founded through the ideals of donors from all walks of life with the intent to provide people with better healthcare services. As such, in the spirit of those trying to save people, the use of donated funds should be open and transparent to the public. 

In 2013, NHI used approximately NT$5 billion in the adjustment of payment standards for the 5 major medical specializations and spent billions of dollars on the improvement of nursing manpower to further improve the salary structure of medical personnel. The MOHW stated that in 2016, of the total money to be added for the medical service costs for hospitals, NT$5 billion will be set aside for the adjustment of the salary structure of medical personnel. In addition, the National Health Insurance Administration proposed that hospitals set aside 30-50% of the money for the payroll improvement plan. This allows the NT$5 billion of limited healthcare resources to have a comparable effect of NT$10 billion to NT$15 billion. The remaining NT$4 billion for medical service project costs will be used to adjust the payment standard, thus further strengthening the quality of care. 

The MOHW stresses that the current NHI is more financially stable than in the past, and therefore part of the funds can be used to improve the medical environment and reduce the burden on the public through decreased insurance payments. However, due to an aging population, among other factors, public medical needs will continue to increase rapidly. In the future, the public will need to continue to work together, seeking financial stability and making the healthcare system more robust, thus allowing for sustainable, quality healthcare.