In response to an ageing society, the Executive Yuan officials reckoned that the implementation of the 3rd Generation NHI, which overhauls the structure of the NHI expenditure so as to make the use of the NHI resources more efficient, would be necessary. The NHI officials revealed that some academics have made such a suggestion in the meeting for the review of the NHI annual budget.
The NHI annual budget submitted by the MOHW to the Executive Yuan includes the proposed basic fund calculated according to a set of formulas and the proposed adjustment of the premium rate, as well as the NHI financial plan for the next 5 years, which projects the future NHI revenues and expenditures. It is obvious that an aging population has contributed to an increase in NHI expenditure.
In the meeting for the review of the NHI annual budget, some academics suggested that the MOHW should implement the 3rd Generation of the NHI system to reform the structure of the NHI expenditure, reduce unnecessary spending and make the use of the resources more efficient.
MOHW officials pointed out that it is difficult to increase the NHI revenues which heavily rely on the government and the tax payers; therefore, the control of expenditure is the only option to improve the NHI finance. Though the MOHW has kept cutting the expenditure items, an overhaul of the structure of the NHI expenditure is desperately needed to make the NHI financially sustainable. Hence, there is the suggestion of the 3rd Generation of the NHI system.
The aging society is a financial burden to the NHI. An increase in the premium rate is inevitable. The MOHW will carefully study the possibility of the 3rd Generation of the NHI system.
【2020-01-06 / Economic Daily】
