To ease the financial stress of people with a part-time job, the Health and Welfare Minister Wen-Ta Chiu has approved the proposed part-time income exemption threshold raise for the National Health Insurance (NHI) supplementary premium, following public opinion while complying with the law, from NT$5,000 to that of the minimum monthly wage. In the future, the threshold will also be readjusted accordingly when the minimum monthly wage is readjusted. The new rule is aimed to benefit low income part-time workers and economically disadvantaged people who keep a part-time job to make ends meet. 

The draft amendment of the “Regulations Governing the Deduction and Payment of the Supplementary Insurance Premium of the National Health Insurance” that includes the aforementioned new policy will be announced and made available for public comments in the Executive Yuan Gazette and on the Ministry of Health and Welfare’s (MOHW’s) website (http://www.mohw.gov.tw) for a week beginning June 11, 2014. Before the implementation of this new policy, approximately 800,000 insured individuals are imposed with a 2% supplementary premium on every NT$5,000 they earn from their side job. It is estimated that this new policy will benefit about 580,000 people. The implementation of this policy is estimated to reduce the NHI Program’s annual revenue by NT$ 700 million. 

Under the first generation NHI, premiums are calculated based on the regular income of the insured individuals. After the introduction of the second generation NHI, besides the regular income, earnings from 6 extra income sources such as job bonuses are also included in the calculation of premiums of the insured individuals. Under the second generation NHI, the premium base has been changed from 60% of the total income of 90% of the total income, reducing the amount of premiums paid by individuals who make the same income. In addition, the premium rate has been lowered from 5.17% to 4.91%, alleviating the financial burden of individuals who live on one income. Moreover, people aged under 18, lower-middle income households, elderly from lower-middle income families, individuals who are on living subsidy for the disabled or those whose income covered by the labor insurance has not met the amount of the minimum monthly wage, students and the financially disadvantaged individuals are exempted from the supplementary premium if their part-time earning is lower than that of the minimum monthly wage. 

Since the implementation of the second generation NHI, the general public and the legislators have voiced several times for further readjustment of the premium threshold for the 6 minority groups at financial disadvantage to further reduce their financial stress since there are still individuals who keep a side job to make ends meet, but still do not meet the current exemption requirements. MOHW pointed out that as our population is aging rapidly, the demand for health care service is growing exponentially. Although the second generation NHI has temporarily relieved the financial crisis faced by the program, the program is still under a tremendous amount of financial burden. MOHW expressed the hope that the general public could understand the government has been doing its utmost to reform NHI.