Taiwan legislature passes elderly health insurance subsidy amendment

Taiwan’s Legislative Yuan has passed a third reading of an amendment to the Elderly Welfare Act, which will provide full National Health Insurance (NHI) premium subsidies for seniors aged 65 and older who meet specific income criteria. Eligible individuals include those whose annual aggregate income does not meet the filing standard or whose income tax rate is below 20%.

The Ministry of Health and Welfare estimates that approximately 4.03 million seniors—about 83% of the elderly population—will qualify for the subsidy. This policy is expected to cost the government between 39 billion and 40 billion TWD annually, a figure projected to rise to over 62 billion TWD by 2039 as the population ages.

Health Minister Shi Chung-liang and various medical groups have expressed significant concern, arguing the move undermines the NHI principle of “payment based on ability.” Officials warned that the cost will likely be transferred to the working population, potentially increasing the annual burden for individuals aged 15 to 64 by approximately 3,000 TWD, or increasing the burden on tax-paying households by roughly 8,000 TWD.

While proponents, including members of the Taiwan People's Party, argue the law promotes medical equity and standardizes subsidies across different counties, critics label it a policy that “hollows out the next generation” and risks the long-term sustainability of the national health insurance system.