Pharmaceutical News
Taiwan passes special Act to enhance drug supply and healthcare system resilience
2025/07/19

The Legislative Yuan has passed the third reading of the “Special Act for Strengthening Economic, Social, and National Security Resilience in Response to International Developments.” This Act explicitly stipulates that the supplementary budget allocated to the National Health Insurance (NHI) fund must be no less than 12% of the special budget for each fiscal term. An additional resolution further specifies that the NHI fund should be prioritized for enhancing Taiwan's drug supply resilience. The Taiwan College of Healthcare Executives (TCHE) welcomes and supports this policy.

 

Dr. Hung Tze-Jen, President of the TCHE, pointed out that the unstable global political climate, marked by tensions between the United States and China over technology and tariffs, and former President Trump's “Most Favored Nation Drug Pricing Policy”, has created a hostile international environment that threatens Taiwan’s drug supply chain and the public's right to health. Taiwan's NHI system is already under pressure to maintain the provision of high-quality and accessible healthcare services. The government must make every effort to strengthen the financial structure of the NHI fund and enhance the resilience of the drug supply chain.

 

The Act clearly stipulates that at least 12% of the government's supplemental budget for each fiscal term must be allocated to the NHI fund. This policy will help the NHI sustain its services, promote smart healthcare, integrate long-term care, and advance healthcare system reforms.

 

Taiwan imports over NT$25 billion worth of medicines from the United States. With the rising cost of raw materials and increasing risks of supply chain disruption, the NHI system should allocate more resources to strengthen drug supply resilience. This includes supporting the development of locally produced medicines and raw materials, stockpiling essential drugs, encouraging clinical studies for new drugs, and backing contract development and manufacturing organizations (CDMOs). These efforts are key to safeguarding national health security. Dr. Hung acknowledged the government's announcement of the new Act and its accompanying resolution, which will help stabilize the drug supply at its source.

 

The TCHE believes that this policy is not merely a matter of financial support; it also reflects the government's strategic commitment to rebuilding the resilience of the NHI system and ensuring the sustainable development of the broader healthcare system. The TCHE urges government agencies to promptly initiate relevant planning, implement a pharmaceutical resilience index, establish transparent budget allocation mechanisms, and collaborate with industry, government, academia, and research institutions. These efforts are essential to strengthening the capabilities of the pharmaceutical sector and ensuring a self-reliant and secure drug supply.

 

【2025-07-11 / China Times】