Tsai outlines long-term care funding policy

2016/02/26

A proposal to partially fund Taiwan’s long-term care system through an annual allocation of NT$30 billion (US$901.4 million) from tax revenues was announced Feb. 22 by ROC President-elect Tsai Ing-wen.

Under the plan, which includes a yearly commitment of NT$3 billion from the regular government budget, an interministerial task force will be established to coordinate public-sector resources and promote long-term care services.

“More than 20 percent of Taiwan’s population will be aged 65 or over by 2025,” Tsai said, adding that the situation serves as a salient reminder of the need for enhanced measures to provide comprehensive coverage for the nation’s aging population.

“It is vital for Taiwan to address this issue without delay as our population is aging faster in comparison to those in other advanced countries,” she said. “We intend to ensure the program takes root in communities around Taiwan and is affordable for all.”

The ROC government has been working to strengthen Taiwan’s long-term care capabilities. In June 2015, it enacted the Long-Term Care Services Act ensuring the quality of care and support, developing universal, diversified and affordable services, and guaranteeing the dignity and interests of recipients and care providers.

At present, a Cabinet-approved insurance bill is awaiting review in the Legislature. Under the bill proposed by the Ministry of Health and Welfare in October 2014, the cost of such services will be shared by employers, employees and the government at 40 percent, 30 percent and 30 percent, respectively.

According to the MOHW, the bill is expected to take effect in 2018 and generate an annual NT$110 billion benefiting 820,000 individuals islandwide.

Minister of Finance Chang Sheng-ford said both plans can make significant contributions to expanding Taiwan’s social welfare net.

“But the funding structure should accommodate the scope and reach of the system. Any adjustments should be made with a view to ensuring the sustainability of long-term care in Taiwan.”

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=242509&ctNode=2194&mp=9)