TAIPEI (Taiwan News) — Taiwan’s National Health Insurance reserve fund is projected to approach the legal minimum level by the end of next year, CNA reported Saturday.
The reserve fund serves as an emergency buffer for unexpected medical spending. Under the National Health Insurance Act, it must remain above one month of average benefit payments.
Budget estimates presented at the National Health Insurance Committee's recent meeting show that NHI spending in 2027 is expected to exceed income, resulting in a projected deficit of about NT$81.7 billion (US$2.6 billion). By the end of the year, reserves are forecast to fall to around NT$83.3 billion, slightly above the one-month legal threshold.
The projection has raised questions over whether premiums could need adjustment in 2028. In response, Health and Welfare Minister Shih Chung-liang (石崇良) said Saturday the estimate is based on long-term models that may not fully reflect recent economic conditions.
He noted that supplemental premium income has increased in recent years, supported by higher wages. It has also been boosted by stronger financial market performance, including dividend-related taxable income.
He pointed to steady annual growth in the NHI budget over the past three years, ranging from NT$40 billion to NT$60 billion. Based on current trends, Shih said reserves next year are expected to remain at about 2.8 months of spending, or roughly NT$200 billion.
On that basis, he said there is no need to adjust premium rates in the near term. Regarding the longer-term outlook, Shih said the NHI system operates under an adjustment mechanism linked to revenue and expenditure conditions, and that rates will be adjusted if necessary.
