Taipei, March 9, 2010 (CENS)--Yang Chih-liang, minister of the Cabinet-level Department of Health (DOH), resigned yesterday (March 8) due to difference with Premier Wu Den-yih over the proposal to hike the premium for the national health insurance program.

In a statement issued during a press conference for announcing his resignation, Yang pointed out that the DOH can promise to exempt 59% of local people from the proposed premium hike at most, compared 75% required by the Executive Yuan (the Cabinet).

Premier Wu immediately expressed his strong intent to retain Yang on the post, saying that Yang cannot leave the post at the critical time for the reform of the national health insurance program.

Alongside Yang`s resignation, two deputy ministers of DOH, Chang Shan-chun and Hsiao Mei-ling, as well as Cheng Sho-hsia, director general of the Bureau of National Health Insurance, also tendered resignation.

The DOH`s proposal calls for raising the premium rate to 5.09%, up from 4.55% now, which will affect 41% local people. The rate hike will generate extra premium income of NT$45 billion a year, sufficient to cover the existing shortfall of the program which had topped NT$58.8 billion at the end of last year. Without the hike, the shortfall of the program will top NT$101.5 billion by the end this year.

Premier Wu, however, intends to embrace differentiated premium rates for local people according to their income levels, which he said can exempt 75% local people from the premium hike.

(by Philip Liu)