Pharmaceutical News
Government agencies owe National Health Insurance NT$7.2 billion in arrears, repayment could be delayed until 2027
2020/10/23

The National Health Insurance’s (NHI) finances have ended in the red for the past four consecutive years and the financial shortfall has continued to increased year by year. Academics estimate that 2020’s financial shortfall has already reached NT$73.6 billion. In order to ensure the sustainability of the NHI, premiums and copayments may be increased next year. However, few will know that in addition to funding medical expenditure, government departments have been drawing money from the NHI’s massive global budget to fund other policies and programs, and that those sums have not been repaid. In response, relevant government departments have emphasized that these arrears are unrelated to ongoing NHI global budget discussions.

 

The Legislative Yuan’s 2020 budget evaluation report pointed out that at the end of 2018, government agencies in total owed more than NT$13 billion in upfront funds drawn from the NHI global budget. The National Health Insurance Administration’s (NHIA) Financial Analysis Division confirmed the Centers for Disease Control (CDC), owes the largest amount, followed by the Health Promotion Administration (HPA) and the Ministry of Health and Welfare (MOWH). After deducting the latest repayments from 2020, the three aforementioned agencies still owe the NHI around NT$7.2 billion.

 

Financial Analysis Division Deputy Director Chen Mei-hsin pointed out that while government agencies still owed the NHI NT$13 billion, the figure has dwindled to NT$7.2 billion in 2020. Disregarding owed interests and only looking at the principal,  the MOWH still owes NT$70 million for a pediatric dental program in 2014, while the CDC owes NT$6 billion for a AIDS-related program between 2013 and 2014, with the HPA owing NT$1.17 billion for a preventative care program in 2014. Deputy Director Chen said that with the exception of the above, all other arrears owed by government agencies have been repaid.

 

Deputy Director Chen said the government agencies mentioned above do not have the required funds to repay what they owe in a single lump sum and that doing so will lead to significant budgetary difficulties. Therefore, the NHIA has inked repayment plans with the aforementioned agencies. The NHIA will also charge interest on the remaining arrears at the same rate as postal savings accounts. According to the repayment plans, the CDC is expected to fully repay its remaining $6 billion with interest in 2026, while both the MOHW and the HPA will repay their arrears with interest by 2027.

 

[2020-10-20 /United Daily News]