Taiwanese Prime Minister Cho Jung-tai has refused to countersign an amendment requiring the central government to cover National Health Insurance (NHI) premiums for a specific category of senior citizens.
Taiwan’s Cabinet spokesperson Ms Michelle Lee speaking with media persons, said there are three reasons for Mr Cho's decision not to countersign the amendment to Article 22 of the Senior Citizens Welfare Act, which would cost the government an estimated NT$40bn ($1.22bn) annually.
Under the amendment, the central government would fully cover NHI premiums for eligible seniors, estimated to account for about 80% of people aged 65 and older.
It would also remove local governments' obligation to help cover medical expenses not reimbursed by NHI for seniors unable to afford them. According to Lee, about 66,000 people currently qualify for such assistance. The amendment was passed by the Legislature in a 60-39 vote, with support from the opposition parties, which together hold a legislative majority.
According to a news report by newspaper Focus Taiwan, Ms Lee said the Cabinet's first concern was that the amendment would infringe on its constitutional authority over policymaking and budgeting by requiring additional government spending.
The Cabinet's second concern was that low-income seniors could lose access to medical assistance because no other law requires local governments to cover their medical expenses.
Finally, the third concern is that the cost would continue to rise as Taiwan's population ages, placing a greater financial burden on younger generations and potentially reducing funding for other public programmes.