Taiwan: Finding a Way to Health
Less than a quarter century ago, Taiwan was barely keeping the pieces of a patchwork health care system together. The expensive, multi-payer system left out 41%1 of its population while its economy was growing and rising to the levels of the top developed countries in the world. As the disparity between the insured and uninsured expanded, the call for social justice was heard. Uncertain of the right path to take, the government looked to Dr. Hsiao, a Chinese expat Harvard professor, for help to find their way to build a true health care system. By 1995, the Taiwanese government opened its first universal health care system to its 11 million citizens.
Their new system borrowed existing practices of other countries creating another patchwork, but this time with intent and purpose. Similar to the Bismarck model, Taiwanese government mandates every citizen to have health insurance and sets the premium rates to be paid by employers and employees into the National Health Insurance (NHI) fund. Taken from the French model, the government manages cost controls through regulating the private sector service rates, medical …show more content…
Almost 100% are subsidized based on income and employment with low premiums to remove the affordability barrier. For those employed, the premiums are split between three payers; the employer pays 60%, the employee pays 30%, and the government pays 10% towards the National Health Fund to finance the health care system. Along with keeping premiums at low levels, co-payments are typically $2 for doctor visits, $4 for hospital outpatient visits, and a 6$ cap for prescription drugs. The overall impact from opening up the coverage to all its citizens was a remarkable response within the free market economy. The new health care system expanded the number of new clinics and suppliers to meet the
Less than a quarter century ago, Taiwan was barely keeping the pieces of a patchwork health care system together. The expensive, multi-payer system left out 41%1 of its population while its economy was growing and rising to the levels of the top developed countries in the world. As the disparity between the insured and uninsured expanded, the call for social justice was heard. Uncertain of the right path to take, the government looked to Dr. Hsiao, a Chinese expat Harvard professor, for help to find their way to build a true health care system. By 1995, the Taiwanese government opened its first universal health care system to its 11 million citizens.
Their new system borrowed existing practices of other countries creating another patchwork, but this time with intent and purpose. Similar to the Bismarck model, Taiwanese government mandates every citizen to have health insurance and sets the premium rates to be paid by employers and employees into the National Health Insurance (NHI) fund. Taken from the French model, the government manages cost controls through regulating the private sector service rates, medical …show more content…
Almost 100% are subsidized based on income and employment with low premiums to remove the affordability barrier. For those employed, the premiums are split between three payers; the employer pays 60%, the employee pays 30%, and the government pays 10% towards the National Health Fund to finance the health care system. Along with keeping premiums at low levels, co-payments are typically $2 for doctor visits, $4 for hospital outpatient visits, and a 6$ cap for prescription drugs. The overall impact from opening up the coverage to all its citizens was a remarkable response within the free market economy. The new health care system expanded the number of new clinics and suppliers to meet the