TAIPEI (Taiwan News) — A KMT-backed draft amendment to the Senior Citizens Welfare Act to eliminate health insurance premiums for citizens over 65 is scheduled for a third reading in the legislature on Tuesday, with the health ministry warning that passage could bankrupt the nation’s health insurance program.
Under the current proposal, seniors who make up to NT$590,000 (US$18,000) annually, the 5% income tax bracket, will be exempt from monthly National Health Insurance premiums. Seniors with income over this amount will still be required to pay health insurance premiums, per CNA.
The legislature was scheduled to undergo a third reading of the draft amendment last week, but lengthy reviews and discussions delayed the vote. A coalition of medical associations across Taiwan also opposed the draft amendment.
At a press conference on Monday, Deputy Health Minister Lin Ching-yi (林靜儀) warned that the exemption would cut NT$24.1 billion in revenue from the health insurance system annually. Furthermore, Lin said the lost revenue would lead the NHI safety reserve to fall below one month's worth of expenditures by 2026, potentially bankrupting the health insurance system.
Lin added that exempting some seniors from health insurance premiums goes against the Cabinet’s commitment to freezing them for two years. Should the senior exemption be enacted, health insurance premiums for the rest of Taiwan’s population could increase.
As Taiwan becomes a super-aged society next year, young and middle-aged people will be asked to undertake an even greater burden of supporting the health insurance system. Lin says this would violate principles of social fairness and justice.
With NHI facing the potential of less future revenue, it could lead to compromised medical coverage for other citizens. For example, spending cuts could include NT$8.1 billion allocated for new drugs next year, NT$1.8 billion for rare disease treatment, and NT$9.4 billion for home medical services.
Lin admits the KMT-backed amendment may be well-intentioned to reduce the medical burden on the elderly, but given the current state of NHI, she warned there should be no rush to amend current health insurance premiums.
