Pharmaceutical News
NHI budget not keeping pace with health technology advancement
2022/12/10

The MOHW held a public hearing on the 5th to discuss the NHI reimbursement of advanced therapies.  The discussion focused on how to use private insurance to increase patients’ access to advanced therapies.  Chu Yi-Hong, President of the Taiwan Social Healthcare Association, expressed that emerging health technology is putting heavy financial burden on the NHI; and the NHI budget is not able to keep up with the pace of health technology advancement.  Legislator Hong Sun-Han (DPP) expressed that the NHI needs to strengthen the implementation of the hierarchical healthcare system and optimize the use of healthcare resources.

 As new health technology and innovative medicines continue to be brought to the market in response to an ageing population and the diversification of diseases, the financial burden on the NHI is increasing.  Therefore, the NHIA applies the health technology assessment (HTA) to evaluate the benefit of emerging treatments and set the reimbursement conditions accordingly.  The NHIA has also established a platform for patients to share their opinions and enable patients to participate in NHI reimbursement decisions.

Tsai Huo-Yen, Deputy Director of the Insurance Bureau, pointed out that many insurance companies are offering health insurance policies which cover new drugs and new treatments for cancers or severe injuries/diseases.  This kind of health policies helps patients fill the gap in medical expenses not covered by the NHI.  Tsai said that the Financial Supervisory Commission will help insurance companies to develop appropriate health insurance policies to cover new medical products.

Chu Yi-Hong, Vice President of the Taiwan Hospital Association, also pointed out the impact of new health technology on the NHI Global Budget.  Taking new drugs for example, the 42 new drugs introduced in 2017 will cost the NHI NT$4.2 billion in 2022, far higher than the NHI’s 2022 new drug budget of NT$2.5 billion.

Chu expressed that the shortfall is actually borne by the healthcare providers.   The HTA simply defers the financial impact on the healthcare system.  The government should not shirk their responsibility, said Chu.

Legislator Hong Sun-Han expressed that Taiwan’s healthcare spending as a percentage of GDP is relatively low compared to the international average.  In Taiwan, many hospitals survive on revenue from parking lots and food halls.  Hong urged that the authority should use the healthcare resources more efficiently by fully implementing the hierarchical healthcare system.

In response to these comments, Dr Hsueh Jui-Yuan, the MOHW Minister, stated that it is time to review the NHI system.  There are three reform directions: co-payment, premium rate and law amendment.   As an administrative body, the MOHW does not have any pre-set position.  The MOHW is open to any consensus formed by the society, said Dr Hsueh.

【2022-12-05 / Taiwan Awakening News】