As the spread of COVID-19 comes under control, the Taiwan society has been increasingly supportive of Minister of Health and Welfare Chen Shih-chung, who according to a survey conducted in May is enjoying a 94 percent approval rating due to his role in leading Taiwan’s containment efforts. With the pandemic subsiding in Taiwan, Minister Chen said that he now has time to focus on other Ministry of Health and Welfare objectives.

“I am working on a five-to-six-year plan and by year-end will come out with an NHI premium adjustment plan,” Minister Chen said in an exclusive interview with Business Today. “I know it will be a difficult task, but it is necessary and I am indeed prepared to raise the NHI premium.”

Prior to the sudden onset of the pandemic, reforming NHI finances has always been among Minister Chen’s top priorities. As early as 2017 when he took office as health minister, Minister Chen had proposed the “NHI 3.0” system, where premium contribution would be based on household income instead of individual income. However, due to the drastic departure from the long-standing individual-based approach to calculating premiums and concerns that single people will be penalized, the proposed reform has not gained traction in the past three years.

However, as Taiwan has become an aged society and been facing a tremendous increase in demand for medical care services, the NHI’s safety reserve, which has dwindled to around NT$100 billion, could fall below the equivalent of 1.5 months’ NHI expenditures before the end of 2021 if premiums are left unchanged. Maintaining the viability of the NHI system by raising NHI premiums is a challenge that cannot be avoided by the government and a daunting and thankless task for any health minister, regardless of how high their approval rating may be.

Minister Chen said that he is aware that the goodwill generated during his time at the helm of Taiwan’s containment effort will not necessarily help with his bid to raise NHI premiums.

The mission to raise Taiwan’s medical care capacity and expand medical manpower will require more funding. Minister Chen hopes that the stellar performance of Taiwan’s medical care system following the onset of the pandemic will help garner the public’s support for raising NHI premiums.

[2020-06-17 / Business Today]