Government seeks to cut costs of BNHI

Of these measures, six will strengthen controls on abuse by hospitals and four will target wasteful behavior by the insured.

According to BNHI Director-General Cheng Shou-hsia, statistics compiled in 2009 show that there were 35,000 people who made more than 100 insurance-covered outpatient visits that year, and another 382 people who made over 200 visits.

In the future, any person who makes more than 100 outpatient visits in a single year will be restricted from making medical visits, a change from the existing policy in which only those making over 200 visits are restricted, Cheng said.

Chronic patients, however, will not be subject to the restrictions, he added.

To prevent drug waste, chronic patients making new medical visits will be required to show their old medicine bags bearing prescription information, he said.

In addition, patients suffering from multiple chronic medical conditions will have to request that hospitals provide integrated outpatient services, while the BNHI will have pharmacists visit the frequent insurance users to guide them on the correct way to use their prescriptions, Cheng said.

In terms of measures targeting hospitals, the BNHI is planning to permanently terminate contracts with doctors with serial violations, medical institutions with violation records, and elderly doctors who do not operate according to clinical practice, according to Cheng.

Medical expenses fraudulently claimed by contracted medical institutions will be deducted from their total quotas, he added.

In addition, the insurance program will stop covering traditional folk therapies and the BNHI will also launch a seventh round of investigation into drug prices, he said.

He said the steps are necessary to address the program's fiscal shortfall, which will have totaled more than NT$160 billion by the end of this year, in addition to a huge cash shortfall caused by premium obligations owed by local governments.

The Department of Health (DOH) has been negotiating with the local governments on plans to repay the debts, Cheng said.

The financial woes of the insurance program have come to the forefront since DOH Minister Yaung Chih-liang unexpectedly tendered his resignation Monday over differences with Premier Wu Den-yih on how the premium rates should be adjusted to increase the program's revenues.

Although Wu refused to accept Yaung's resignation, the minister has taken a leave of absence and has not gone to work since tendering his resignation, although he did meet with President Ma Ying-jeou Thursday to discuss issues concerning reforms to the insurance program.

Yaung told reporters after the meeting that he will make an announcement on whether he will stay in his post after reporting to the president March 17 on the DOH's proposal on premium rate hikes.

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