A move by Taiwan's National Health Insurance System (NHI), to levy penalties on members who have failed to pay their NHI premiums has been struck down by the constitutional court.
According to a report by Taipei Times, the constitutional court in its ruling said that the formula to calculate the penalty is disproportionately harsh to the offense. Of the eight judges in the constitutional court, five judges ruled on the matter while three abstained.
Article 85 of the National Health Insurance Act authorises the government to fine policyholders double the amount owed, or triple if they fail to pay the first time by a deadline.
The judges said using multiples of the sum owed as the sole criterion for calculating fines breached the constitutional right to property and due process, including proportionality of punishments.
The ruling said the law must be amended so that regulators would take the circumstances surrounding missed premiums into account before imposing a fine. The Ministry of Health and Welfare must follow the spirit of the court’s ruling to the best of its ability until the law is changed.
The Ministry of Health and Welfare has said that it will abide by the court judgment and initiate the process to amend the Act.