Brian Hioeby Brian Hioe
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Photo Credit: KMT/Facebook
THE MINISTRY OF HEALTH and Welfare has warned that the fiscal sustainability of the National Health Insurance (NHI) system is at risk through a new proposal from the KMT. The proposal would cover the health premiums of all children from zero to 6.
On the surface, the proposal would reduce the burden on parents in covering health premiums for infants. Nevertheless, the policy has been criticized as benefiting wealthier parents, in that childcare premiums are linked to the salaries of their parents, and under the proposal, higher-income families would receive larger subsidies.
Interestingly, the NHI system receives bipartisan support in Taiwan. The KMT moved to slash government budgets two years ago in what was the largest set of budget cuts in Taiwanese history, with 1/3rd of the government’s operational budget slashed. Even if most public discussion has revolved around how the budget cuts affected Taiwan’s defense budget at a time of rising threats, and in which the US has sought to pressure Taiwan to increase its military spending, social services were also cut.
Although the budget cuts were justified in the name of fiscal balance, Taiwan saw a record tax windfall the year that budget cuts took place. The KMT later tried to justify its action by calling for cash handouts to members of the public.
However, neither was the KMT in favor of phasing out the NHI system, as part of some neoliberal attempt to reduce social services in favor of cash hand-outs to the general public. Both political parties in Taiwan seem to be in favor of maintaining what can be considered a de facto welfare state.
Still, this is hardly the first time in recent memory that the KMT has been accused of attempting to pass policy in order to win votes, even if this has a long-term impact on the government’s ability to function. For one, the KMT is still engaged in efforts to roll back the Tsai administration’s pension reforms.
During the authoritarian era, public servants, teachers, members of the military, and police were paid a generous 18% preferential savings rate as part of their pensions. These lucrative pensions were a means of maintaining political loyalty from these groups, who were essential in maintaining control of society during the course of the White Terror.
Consequently, it may not be surprising that these groups have historically voted for the KMT. The KMT undoing the Tsai administration’s pension reforms, which were passed in order to prevent the pension system from going bankrupt, were intended to benefit a traditional demographic that has backed it.
Similarly, controversy broke out in past months over legislation accused of being passed to benefit the residents of Tsu Ren Eighth Village, which is in Xinyi in Taipei, and was commissioned in 1989. The legislation would pay for the restoration of the village, which led to criticisms that the village is already located on prime real estate in Taiwan, and would allow its residents to redevelop their current homes into luxury towers.
This, too, was criticized as a pork barrel policy, in that veterans have historically backed the KMT, and the bill seemed to benefit individuals who were already extremely privileged at the public expense. As a result, the Executive Yuan refused to sign the bill, marking the second time that Premier Cho Jung-tai has refused to sign legislation passed by the KMT-controlled legislature, in exercising a power of veto that the Executive Yuan historically has not had.
In the meantime, Taiwan has officially become a super-aged society in which 20% of the population is above 65. Moreover, Taiwan’s birthrate is among the world’s lowest. It is to be seen what allows for a change in Taiwan’s demographic decline, even as measures as proposed by the KMT may be merely intended to win votes.