Clipping Board » Medical Affairs and Administration ─ Medical system, pharmaceuticals, and medical community-related reports
2009-02-25 News Flash [Central News Agency]
Hsieh Tien-jen, Chairman of the Consumer Foundation, stated today that 80% of the growth rate in general medical service payments under the National Health Insurance (NHI) does not require negotiation, and drug price expenditures account for a quarter of the total annual spending. He urged the Control Yuan to actively intervene and investigate issues such as the lack of transparency in NHI finances.
Hsieh Tien-jen mentioned that the NHI financial shortfall reached NT$28 billion by the end of last year and is expected to increase to NT$60 billion by the end of this year, accounting for nearly 13% of the total NHI expenditures in 2008.
He also noted that despite the NHI Bureau's annual complaints of financial strain, a 4% annual increase in the NHI budget is still insufficient. The approved expenditure for 2008 was NT$460.47 billion, which is NT$84.216 billion more than the NT$376.191 billion in 2003. Including the existing NT$28 billion shortfall, the current NHI expenses are over NT$110 billion higher than in 2003.
He stated that the Consumer Foundation's investigation found that NHI waste is the primary cause of the financial shortfall. After analyzing the situation, several issues were identified, and the Control Yuan should actively intervene to investigate.
First, in the 2009 NHI total expenditure, the growth rate of non-negotiable factors (which do not require review by 28 committee members) ranges from 1.92% to 3.836%, compared to the negotiable portion's 0.228% to 0.704%, accounting for 80% of the growth rate in general medical service payments. Relevant information is also not transparent. Based on the approved budget growth rate of 3.455% for 2009, NT$12 billion out of NT$15.9 billion does not require negotiation.
Second, drug prices account for a quarter of the total annual expenditure, and there is a lack of proper oversight. Based on a rounded total of NT$460 billion, this amounts to NT$115 billion. In 2006, there was also an incident where hospitals and pharmaceutical companies colluded to inflate drug prices . Additionally, Taipei and Kaohsiung cities owe NT$54.738 billion in NHI premiums.
Wu Jia-cheng, Secretary-General of the Consumer Foundation, said that if the NHI system were successful, the number of patients should decrease. However, the opposite is happening. Are people becoming less healthy? Yang Hsiao-shui-jung, a liaison director of the Consumer Foundation's NHI Committee, bluntly stated that the NHI finances have essentially collapsed. If the NHI Bureau continues to receive performance bonuses, it should demonstrate management performance; otherwise, the financial issues will become a bottomless pit, and there will be no NHI to rely on. Hsieh Tien-jen emphasized that the Consumer Foundation advocates for the Control Yuan to actively investigate the NHI financial black hole. 980225
Source: http:/ / news. chinatimes. com/ C……0507+132009022501017,00. html
Consumer Foundation Urges Ombudsman to Investigate NHI Financial Deficit
Hsieh Tien-jen, Chairman of the Consumer Foundation, stated today that 80% of the growth rate in general medical service payments under the National Health Insurance (NHI) does not require negotiation, and drug price expenditures account for a quarter of the total annual spending. He urged the Control Yuan to actively intervene and investigate issues such as the lack of transparency in NHI finances.
Hsieh Tien-jen mentioned that the NHI financial shortfall reached NT$28 billion by the end of last year and is expected to increase to NT$60 billion by the end of this year, accounting for nearly 13% of the total NHI expenditures in 2008.
He also noted that despite the NHI Bureau's annual complaints of financial strain, a 4% annual increase in the NHI budget is still insufficient. The approved expenditure for 2008 was NT$460.47 billion, which is NT$84.216 billion more than the NT$376.191 billion in 2003. Including the existing NT$28 billion shortfall, the current NHI expenses are over NT$110 billion higher than in 2003.
He stated that the Consumer Foundation's investigation found that NHI waste is the primary cause of the financial shortfall. After analyzing the situation, several issues were identified, and the Control Yuan should actively intervene to investigate.
First, in the 2009 NHI total expenditure, the growth rate of non-negotiable factors (which do not require review by 28 committee members) ranges from 1.92% to 3.836%, compared to the negotiable portion's 0.228% to 0.704%, accounting for 80% of the growth rate in general medical service payments. Relevant information is also not transparent. Based on the approved budget growth rate of 3.455% for 2009, NT$12 billion out of NT$15.9 billion does not require negotiation.
Second, drug prices account for a quarter of the total annual expenditure, and there is a lack of proper oversight. Based on a rounded total of NT$460 billion, this amounts to NT$115 billion. In 2006, there was also an incident where hospitals and pharmaceutical companies colluded to inflate drug prices . Additionally, Taipei and Kaohsiung cities owe NT$54.738 billion in NHI premiums.
Wu Jia-cheng, Secretary-General of the Consumer Foundation, said that if the NHI system were successful, the number of patients should decrease. However, the opposite is happening. Are people becoming less healthy? Yang Hsiao-shui-jung, a liaison director of the Consumer Foundation's NHI Committee, bluntly stated that the NHI finances have essentially collapsed. If the NHI Bureau continues to receive performance bonuses, it should demonstrate management performance; otherwise, the financial issues will become a bottomless pit, and there will be no NHI to rely on. Hsieh Tien-jen emphasized that the Consumer Foundation advocates for the Control Yuan to actively investigate the NHI financial black hole. 980225
Source: http:/ / news. chinatimes. com/ C……0507+132009022501017,00. html