Monday, December 13, 2010

Modified health insurance premium plan to include capital gains

Modified health insurance premium plan to include capital gains ; Taipei, Dec. 13 (CNA) Department of Health (DOH) Minister Yaung Chih-liang said Monday that capital gains will be included in the formula to calculate premiums under a modified proposal to reform the debt-ridden national health insurance system.

Yaung was reporting to the Executive Yuan and the legislative caucus of the ruling Kuomintang on his modified premium proposal after apparently scrapping a long-held plan to calculate health insurance premiums on the basis of overall household income last week.

Yaung said the modified proposal would preserve the merits of the existing system but would move toward taking care of families and including capital gains to broaden the income base on which premiums are figured.

At present, health insurance premiums are calculated based on an individual's basic monthly salary and wages, with all other forms of unearned income and fees excluded.

According to participants at the meeting, several legislators asked Yaung to not only to broaden the system's revenue base but also work actively to plug losses from medical waste and estimate how much money could be saved each year.

The participants said the capital gains initially targeted would be those that are easily identified and of significant amounts.

Service income and fees earned by professionals such as lawyers, which are currently not classified as salary and are therefore not subject to premium calculations, could be included in the new plan. But overtime payments or year-end bonuses earned by laborers could be excluded, reflecting the DOH's effort to prevent putting too much of the revenue burden on low-income earners. articel from http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aALL&ID=201012130038
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