Taiwan‘s National Health Insurance Faces Reform Pause Amidst Budget Growth
Taiwan’s National Health Insurance (NHI) program experienced meaningful financial growth in 2024, reaching an 8% increase when including NT$18 billion in public funds, according to data released during Taiwan Medical Week in November. The total NHI budget is projected to surpass NT$1 trillion in 2025 with the inclusion of these public funds. This growth follows a historical high of 5.5% in 2024.
President Lai Ching-te recently outlined the NHI’s future priorities during a parliamentary debate,focusing on three key areas: improving the quality of medical care,attracting and retaining medical professionals through salary increases,and enhancing the versatility of medical reimbursements.
Though, planned reforms to the NHI supplementary premium rates have been temporarily halted due to public opposition. The proposed changes aimed to address potential loopholes and broaden the income base for contributions. Currently, rental income, interest, and stock dividends exceeding NT$20,000 are subject to a 2.11% supplementary premium. The Ministry of Health and Welfare considered calculating this income annually to prevent individuals from avoiding payments by strategically timing financial settlements.
Furthermore, the proposed reforms included raising the income ceiling for the supplementary premium from NT$10 million to NT$50 million. The Taipei Times reported that these changes, if implemented, would have impacted approximately 4.8 million people and generated an additional NT$10-20 billion in NHI revenue.
The NHI operates as a social welfare program, built on the principle that those with greater financial resources contribute to supporting the healthcare needs of the disadvantaged. the current pause in reforms reflects a sensitivity to public concerns surrounding the proposed changes to the premium structure.
