Members of the National Development Council (NDC) decided on the 20th to increase the upper limit of the growth rate of next year’s NHI budget to 5.5%, considering factors such as an ageing society and an increased demand for healthcare. This ceiling growth rate, if approved, will be the highest in three years. The suggestion will be submitted to the Executive Yuan for approval and then to the NHI Board for negotiation in September.
Lin Chi-Mei of the NDC expressed that though the NHI is facing a financial shortfall, there is still sufficient safety reserve available to avoid a premium rate hike.
The NDC is responsible for proposing the upper and lower limits of the growth rate of the annul NHI budget. The suggestion is subject to the Executive Yuan’s approval. The NHI Board will then discuss and decide the annual Global Budget accordingly.
The NDC has proposed a lower limit at 3.708% and an upper limit at 5.5% of the growth of the NHI budget for next fiscal year, considering factors such as the insured population, an ageing society, healthcare costs, etc. The ceiling growth rate, if approved, will be the highest in three years. The ceiling growth rates from 2016 to 2019 were: 5.8%, 5.9%, 5.0% and 4.5%.
Lin Chi-Mei expressed that the decision to increase the upper limit when the NHI is facing a financial strain is mainly because the population is ageing very quickly and the drug prices and service costs are growing. In fact, the increase in the ceiling growth rate is due to the increase in the floor growth rate, said Lin.
Lin expressed that the NHI expenditure for next year is approaching NT$700 billion. With the lower limit at 3.708% and the co-payment paid by the insured, the NHI is estimated to have a fund of NT$741.9 billion for next year, an increase of NT$26.6 billion.
In addition to the decision on the growth rates of the NHI budget, the NDC meeting also made a resolution to request the MOHW to establish a mechanism for tracking treatment effectiveness by using big data and HTA tools. The mechanism will help to support the NHI budgeting, encourage effective treatments and improve NHI efficiency and quality.
Also, the NDC is to request the MOHW to review the base period for the NHI global budget, to strengthen the execution of budget and to use big data to evaluate the future changes in the NHI reimbursement structure for a better prediction.
【2019-06/21/ Commercial Times】
