On October 16 the Legislative Yuan passed, on third reading, an amendment to Article 22 of the Senior Citizens Welfare Act under which the central government fully covers National Health Insurance premiums for people aged 65 and over in income tax brackets below 20 percent. The Executive Yuan strongly objected, citing constitutional concerns and generational fairness.
According to the United Daily News, the Economic Daily News and ETtoday, the Legislative Yuan passed the amendment on third reading on October 16. The Economic Daily News reported the vote at 60 in favor and 39 against, with the KMT and Taiwan People’s Party (TPP) holding a majority. Speaker Han Kuo-yu announced a floor vote under the house rules after cross-party talks failed on October 15 and the negotiation period expired.
광고 문의 · 300×250Under the amendment, the central government fully pays the National Health Insurance premiums of people aged 65 and over whose comprehensive income tax rate is below 20 percent. The Economic Daily News said people whose total income over the past year fell below the filing threshold are also covered. Until now, counties and cities set their own subsidy thresholds based on local finances; the amendment creates one national standard, with eligibility and benefit details left to the central competent authority.
The Cabinet sees a heavy fiscal impact. The udn reported that the Executive Yuan estimated roughly NT$39.97 billion this year, rising to about NT$62.86 billion by 2049. The Economic Daily News, citing the Directorate-General of Budget, Accounting and Statistics and a Ministry of Health and Welfare calculation, put the figures at about 4.03 million beneficiaries, around NT$38.8 billion a year and NT$826 per person per month. Estimates differ by method, so ‘roughly NT$40 billion a year’ is the safest reading.
The DPP-led government pushed back hard. Premier Cho Jung-tai said the amendment touches Article 70 of the Constitution and Article 91 of the Budget Act, which call for the two Speakers to consult first, yet the Legislature went ahead; he accused Han of allowing unconstitutional action. Spokesperson Lee Hui-chih said the Cabinet will convene experts and respond lawfully within its constitutional powers. The reports we reviewed do not say whether the Cabinet will countersign the bill.
Generational fairness is the government’s central argument: covering the gap through higher premiums or taxes would shift the burden onto working-age people, could crowd out long-term care and social welfare, and departs from NHI’s principles of mutual aid and ability to pay. The New Power Party criticized the 20 percent threshold as covering about 83 percent of seniors, close to a universal exemption, and said a single senior earning over NT$1.6 million a year could still qualify. Seven medical groups also urged targeted subsidies instead of broad ones.
Supporters stress the need for a uniform national standard. The TPP caucus said senior premium support is about 1 percent of next year’s NT$3.9 trillion budget and eases the load on the ‘sandwich generation’. Chiayi County Magistrate Weng Chang-liang welcomed the change as relieving local finances, and Chiayi City has budgeted NT$500 million for next year, while Kaohsiung’s Social Affairs Bureau warned it could squeeze NHI finances and other welfare resources.
The bill passed a little over a month before the year-end local elections, which has fueled questions about timing. Setting positions aside, the dispute has two main strands: the criticism that no complete funding plan exists, and a separation-of-powers clash over the Legislature acting alone on a budget matter in the executive’s domain. Countersignature, a possible request for constitutional interpretation, and the ministry’s implementing rules are the next milestones.
