The National Development Council (NDC) of the Executive Yuan has approved a maximum growth rate of 4.7% for the 2024 NHI global budget. The MOHW initially proposed a budget growth range of 2.621% to 5%; but the NDC decided to lower the cap to 4.7%. Given the NHI’s sufficient reserve fund, it is unlikely that the NHIA will increase NHI premiums next year.
The NDC held a meeting on the 17th to discuss the growth of the 2024 NHI global budget and subsequently reached the aforementioned decision. This decision will now be forwarded to the Executive Yuan for final approval. Liu Yu-Juan, the Director of the Department of Social Insurance of the MOHW, expressed that the growth rate of the NHI global budget for the upcoming year will fall within a range of 2.621% to 4.7%, equivalent to about NT$858.1 billion to NT$875.5 billion. This growth range is mainly due to the rise in prices and the increase in the cost of elderly care.
Considering the population structure, healthcare cost and the growth of the insured population, the NDC has set the minimum growth rate at 2.621%. As for the maximum growth rate at 4.7%, it is based on the NHI’s needs and the level of the NHI reserve fund.
According to the NHI Act, once the growth range is approved by the Executive Yuan, the NHI Board will kick off the negotiation meeting with the stakeholders of all healthcare sectors in September.
Dr Hung Tzu-Jen, President of the Taiwan College of Healthcare Executives, expressed disappointment over the NDC’s decision to reject the health industry’s consensus of a 5% upper growth rate. Dr Hung stated that the NDC should take into account Taiwan’s national development strategy. With a 5% annual growth rate, Taiwan's health expenditure as a percentage of GDP is projected to catch up with that of South Korea within the next five years.
Dr Hung pointed out that the NHI requires funds to pay for innovative cancer drugs, expand reimbursement scopes of orphan drugs and address the pressing issue of nurse shortages. Now, the health industry is waiting for the negotiation meetings in September to finalize the exact growth rate.
【2023-07-17 / United Daily News】
