In an interview with Business Today, National Health Insurance Administration (NHIA) Director General Shih Chung-liang said that Taiwan’s current health expenditure as a percentage of GDP is around 7%, a relatively low figured compared to the OECD average of 9.2% of GDP. An additional NT$460 billion in annual health spending would be needed for Taiwan to match the OECD average, Director General Shih said, adding that it would be unfeasible for Taiwan to catch up to the OECD average immediately.

To raise Taiwan’s investments into health, Director General Shih proposed four directions for reforming the National Health Insurance (NHI), as listed in the following:

1. Lifting the 6% legally mandated cap on NHI premiums as outlined in the NHI Act, to which the MOHW has formed a task force on the required legislation; considering new revenue streams including tax income to fund major initiatives; funding the Cancer Drug Fund with the central government’s general budget to mitigate the impact to NHI finances,
2. Reviewing current medical payment standards and consider reforms, such as adopting the capitation payment model,
3. Raising allocation of NHI resources towards early treatment, and
4. Collaborating with the Health Promotion Administration to improve cancer screening, and establishing a “family medicine platform.”

In his inaugural address in February 2023, Director General Shih proposed five reforms to the NHI, some of which are already in progress while others are still in the process of seeking social consensus.

[2024-6-12/Business Today]