Pharmaceutical News
NHI premium rate is to increase to 5.17% for at least 2 years
2021/01/09

Dr Chen Shih-Chung, the MOHW Minister, announced that the NHI premium rate is to increase from 4.69% to 5.17% with immediate effect.  On average, a salary-earner will have to pay NT$63 more every month under the new rate.   For the majority of the insured (70%), the increase of the monthly premium is under NT$70.

Under the new rate, the NHI safety reserve fund will drop to the level of 1.42 months of expenses in 2021 and to the level of just 0.64 months of expenses in 2022, far below the mandatory level of 1.5 months.  However, Dr Chen stressed that this adjustment is to be implemented along with three major corresponding measures: to reduce waste, to improve fairness and to increase the quality.  The objective of this new premium rate is to avoid another adjustment in 2 years’ time, said Dr Chen.

According to the NHI Act, the authority has to review the premium rate if the safety reserve fund falls below the level of 1.5 months of expenses.  Based on this requirement, the NHI Board had an extraordinary meeting in last November, and agreed to increase the premium rate but failed to reach a consensus on the new rate.  The NHI Board submitted two proposals to the MOHW for the final decision.

The NHI Board put forward two proposals of the new rate at 4.97% and 5.47-5.52% respectively.  A higher rate will secure the NHI for longer, but will have an impact on the vulnerable.  On the other hand, a lower rate will soon require another premium rate adjustment.  The MOHW’s final decision fell between the two proposals with a view to keeping a balance between the sustainability of the NHI system and the protection of the vulnerable.

Dr Chen also announced some corresponding measures for this premium rate adjustment, such as the changes in co-payments, a review of the Taiwanese expatriates’ NHI status and fee charges, etc.  Dr Chen expressed that the society needs to have a discussion about those issues.  For example, to reform the co-payment for drug fees and treatments for serious injuries, the authority may introduce the “account system”.  And for the Taiwanese expatriates, the MOHW may consider charging the premium according to their overseas earnings.    The MOHW will propose a law amendment in the Legislative Yuan later this year. 

【2021-01-01 / United Daily News】