The third reading of the blue and white campaign to exempt health insurance premiums for those over 65 years old. The Political Yuan: Beyond the Constitution and Generational Injustice
Quick Look
- The Legislative Yuan passed the third reading of amendments to Article 22 of the Elderly Welfare Law yesterday, clearly stipulating that the health insurance premiums for seniors over 65 years old whose comprehensive income tax rate does not reach 20% shall be subsidized by the central government.
- The Ministry of Health and Welfare estimates that of the approximately 4.85 million senior citizens in Taiwan, approximately 4.03 million are eligible for exemption, which requires an allocation of approximately NT$40 billion each year.
- The Executive Yuan pointed out that there are three problems with the amendment of the law: it deviates from the spirit of mutual assistance in health insurance, crosses the constitutional boundaries, and increases the financial burden through additional expenditures, which may cause unfairness for generations.
AI-generated summary
Why It Matters
The Legislative Yuan passed the third reading of amendments to Article 22 of the Elderly Welfare Law yesterday, which stipulates that the health insurance premiums for those over 65 years old whose income tax rate does not reach 20% will be subsidized by the central government. The Ministry of Health and Welfare estimates that currently, of the approximately 4.85 million senior citizens in Taiwan, approximately 4.03 million are eligible for exemption, requiring an annual allocation of approximately NT$40 billion, which is likely to gradually increase.
The Legislative Yuan passed the third reading of amendments to Article 22 of the Elderly Welfare Law yesterday, which stipulates that the health insurance premiums for those over 65 years old whose income tax rate does not reach 20% will be subsidized by the central government. (Photo taken by reporter Fang Bin)
Yesterday, the Blue and White parties took the lead in passing the amendment to Article 22 of the Elderly Welfare Law at the Legislative Yuan, which clearly stipulates that the health insurance premiums for seniors over 65 whose comprehensive income tax rate does not reach 20% will be subsidized by the central government. The Ministry of Health and Welfare estimates that currently, of the approximately 4.85 million senior citizens in Taiwan, approximately 4.03 million are eligible for exemption, requiring an annual allocation of approximately NT$40 billion, which is likely to gradually increase.
There are two conditions for exemption. It is estimated that it will cost at least 40 billion per year.
The Executive Yuan stated that this amendment has three problems, including that it deviates from the spirit of mutual health insurance, crosses constitutional boundaries, increases financial burdens through additional expenditures, and may lead to generational injustice.
Please read on...
Minister of Health and Welfare Shi Chongliang said yesterday that if these costs were passed on to people aged 15 to 64, each person would pay approximately NT$3,000 more per year. He preached that health insurance premiums should return to the spirit of spending according to capacity and mutual help and mutual benefit, instead of supplementing premiums based on "identity". According to statistics, people over the age of 65 account for about 20% of Taiwan's total population, but they account for about 42% of health insurance medical expenses.
Healthcare Reform Council: 80% free for senior citizens, tearing apart generations
Lin Yahui, CEO of the Medical Quality Reform Foundation, sternly condemned that currently about 5% of the elderly are exempt from paying premiums. After the law is revised, this will jump to more than 80%, which will tear apart generations.
Zhuang Ruixiong, secretary-general of the Democratic Progressive Party, said that whether health insurance is social insurance or social welfare must be clarified. The amendment of the law involves long-term major financial expenditures, and the People's Party should explain where the financial resources come from.
The People's Party held a vigil in front of the Legislative Yuan from late at night on the 15th, striving for the third reading of the "Amendment to Certain Articles of the Elderly Welfare Law" at yesterday's session. Legislative President Han Kuo-yu convened the party group for consultation yesterday, but the ruling and opposition groups failed to reach a consensus and finally voted to deal with it. Ninety-nine people were present, 60 were in favor and 39 were against, and the motion to amend according to the blue and white was passed.
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What to Watch
AI outlook — possibilities, not facts
The Ministry of Health and Welfare will propose a detailed financial resource planning plan in the next few months to meet the annual demand for health insurance subsidies of approximately 40 billion yuan.
Likely · Within months
The Constitutional Court may receive requests for interpretation of the Constitution on whether this amendment violates the principle of constitutional distinction or equality.
Possible · Within months
In the future, the health insurance premium rate adjustment bill will focus more on how to balance the burden of the elderly and the fairness of the younger generation, becoming a major point of policy competition between the two parties.
Very likely · Within months
Open Questions
- How will the central government raise financial resources to subsidize health insurance premiums of approximately 40 billion yuan each year?
- Will this amendment be reviewed by the Constitutional Court to see if it exceeds the constitutional boundaries?
- If health insurance premiums are passed on to people aged 15 to 64, how will the actual impact be distributed among different income levels?
- In the long run, will this policy induce more high-income seniors to deliberately lower their declared comprehensive income tax rate to meet the exemption threshold?
