“It is impossible to satisfy the premier’s request that 75 percent of the public be unaffected by a rise in rates,” Yaung said. “I apologize for being unable to meet these lofty expectations.”
Yaung has been advocating an across-the-board rise in premiums for months in order to save the National Health Insurance system, at present NT$58.8 billion (US$1.84 billion) in debt. But Wu said such a move would be unpalatable with voters and insisted the rise be limited to higher income earners.
According to various scenarios prepared by the DOH’s Bureau of National Health Insurance, Yaung said he could only guarantee that 59 percent of the insured would remain unaffected by rate adjustments.
In his statement, Yaung said he felt the government should make introducing a second-generation health insurance program its ultimate reform goal.
The minister, in an earlier DOH position paper, said a second-generation health insurance program would calculate premiums based on total household incomes instead of only on salary and wages. The new system would ensure that those with unearned income from capital gains on stock market and property transactions would pay more in health insurance premiums.
Following Yaung’s announcement, DOH deputy ministers Chang Shan-chwen and Hsiao Mei-lin, and BNHI Director Cheng Shou-hsia tendered their resignations.
In response to Yaung’s surprise move, Government Information Office Minister Johnny Chi-chen Chiang said the premier rejected the DOH minister’s resignation.
“The premier hopes Minister Yaung will stay on and continue working to reform Taiwan’s health insurance system,” Chiang said. “The minister has made great progress and should not be leaving now.”
Chiang said Wu has made several calls to Yaung and respectfully requested he keep driving toward the creation of a second-generation health insurance system.
“The premier recognizes Yaung’s efforts in promoting Taiwan’s influenza A (H1N1) vaccination program and bringing about health insurance structural reform,” he said.
According to Cabinet insiders, Wu “invited” Yaung to report on the latest health insurance reforms March 8, but the minister begged off, claiming he felt under the weather. (CYH-JSM)