Pharmaceutical News
Call for government to increase investment in health as 2023 NHI global budget negotiation ends
2022/09/25

The NHI completed the negotiation process for the 2023 NHI Global Budget on 23rd and announced the annual growth rate to be between 1.307% and 4.5%.  After 12 hours of discussion, consensuses on most departmental budgets were formed among the representatives of fee payers and the representatives of hospitals, except for the growth rate of the budget for western medicine.  There is a huge gap between the proposals submitted by the fee payers and the hospitals.  The fee payers proposed a growth of 2.85% (NT$832.4 billion), while the hospitals proposed a growth of 4.2% (NT$843.7%).  Both versions will be submitted to the MOHW for the final decision.

Wu Hong-Lai, the President of the Taiwan Alliance of Patients’ Organizations and also a representative of fee payers in the NHI Board, said that the final meeting went smoothly as consensuses had already been formed.  The final amount will be determined and announced by the MOHW Minister.

Until the end of this year, the Board will still have to discuss whether it should raise the NHI premium rate and implement the new co-payment tariff.   However, as the 2024 presidential election is on the horizon, a hike in the premium rate seems unlikely.  Even if there were an increase, it would not be substantial as the rate is nearly hitting its legal cap at 6%.  A law amendment is required to legitimate a bigger increase. 

Dr Hong Tsi-Ren, the Deputy Superintendent of the Hsin Kong Memorial Hospital, expressed that an increase in the total global budget will facilitate the introduction of new drugs and new technologies, which will not only benefit patients but also support the development of the pharmaceutical industry.  Over the past decade, the government persistently under-invests in healthcare.  The health spending accounts for only 6.7% of the GDP in Taiwan, while in our neighbour countries, the ratio is between 8% and 9%.  The government should increase the NHI budget so as to sustain the healthcare standard in Taiwan.

As for the implementation of the new co-payment tariff, Wu Hong-Lai said that the society still has concern about it.  Once implemented, it should be closely monitored to prevent the vulnerable groups from losing out.

Dr Hong stated that the co-payment wouldl not actually help ease the NHI financial pressure, as it is just a mechanism for addressing the fairness of the user fee policy.  To further expand the NHI funding sources, the government should indeed consider amending the law.

Even though the NHI is under a financial strain, the government has still failed to fulfil its duty of paying its statutory share of at least 36% of the NHI budget.  This year, the Directorate General of Budget, Accounting and Statistics has allocated a bit more funds than before, but it is still not enough.   To maintain a healthy level of the NHI safety reserve, an increase of the premium rate would be inevitable.

Wu Hong-Lai pointed out that preventive medicine will be the direction of future healthcare.  For example, the population of patients with kidney failure, diabetes or metabolic syndrome continues to growth, so the authority should formulate prevention programs to help patients with their financial burdens.

【2022-09-23 / United Daily News】