TAIPEI: Taiwan's top health official expressed hope yesterday that health insurance premium rates would be hiked within six months to help address the financial shortfalls of Taiwan's public health insurance system.

In an interview on a local radio station yesterday, Department of Health (DOH) chief Yaung Chih-liang reiterated the need for higher premium rates but said other measures to cut costs and increase revenues were being considered.

Prior to the December 5 local elections, Yaung argued that a premium rate hike was necessary but denied that there was a timetable for the move.

He said then that the rate, currently set at 4.55 percent of monthly salaries with a ceiling of NT$131,700, is far lower than what he described as the "reasonable rate" of 6.97 percent and warned that if the low premium remained unchanged, the universal health insurance system will go bankrupt in 10 years.

Those comments led some legislators of the ruling Kuomintang (KMT) to blame him for the party's poor showing in the December 5 local elections.

Yaung yesterday said he respected their opinion and acknowledged that it was "bad timing" to talk about hiking premium rates before the elections.

Since the situation occurred, he said he would take "general responsibility" for it, but Yaung did not back down on his advocacy of hiking premium rates, especially as Taiwan's population continues to age.

The DOH chief said the system's financial woes could be partly attributed to the graying of the population. There are 30 percent more senior citizens in Taiwan than a decade ago, he noted, and their medical expenses per person average 3.3 times more than younger citizens.

Rising health care expenses that now average about $1,000 per person per year have also taken their toll on the health system's finances.

Concerned about the sustainability of the system, Yaung said the economically disadvantaged would suffer the most if the program was forced to shut down, because the wealthy could afford private insurance alternatives.

On the timing of adjusting the health insurance premium, Yaung said he hopes to accomplish it "within six months" and will do all he can to make it happen, though other measures were under consideration to ease the burden of rate hikes on the poor.

"The ultimate goal is for economically disadvantaged groups to pay less but enjoy the same health care protection as those who can afford insurance and help to pay more," he said.

Yaung also said he will actively call on legislators to convince them that a rate hike is necessary.

According to Yaung, the health insurance program's accumulated deficit will reach NT$50 billion by the end of this year.

China Daily/CNA

(HK Edition 12/10/2009 page2)