An Overview of Health Care Financing in Taiwan: Analysis of Issues Concerning Health Insurance

Taiwan is a small island in the eastern part of Asia (midway between the Japan and the Philippines) that is constantly under political debate and diplomatic isolation. Taiwan has been independent since the 1950s, yet China has claimed sovereignty over Taiwan and insists nations cannot have official relations with both countries (Adams, 2010). Taiwan is not formally recognized by the United Nations (UN) and World Health Organization (WHO) which has brought concerns to whether it can survive as an independent-sovereign nation-state (Lu, 2014). Its political status remains a controversial topic both domestically and internationally. Despite these challenges, Taiwan is considered to have achieved an economic miracle with its rapid transition from an agricultural-based to an industrial-based economy. Yet, together with economic development, Taiwan is witnessing an unusually rapid demographic transition. It has a total population of

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23.3 million, making it the 17th most densely populated country in the world (Statista, 2008). Taiwanese people are living longer but not healthier and fewer children are being born. The infant mortality rate is at 4.3 deaths/1000 live births and the birth rate in Taiwan is currently below the rate needed to sustain population growth as the current growth is caused by longevity (WPR, 2019). Life expectancy in Taiwan has increased to levels seen in OECD countries, with women living on average to 83.4 years old and men to 76.8 years old (WPR, 2019). It is estimated that people aged 65 and over will account for 24.1 percent of the population by 2030 (WPR, 2019). The leading causes of deaths in Taiwan are non-communicable diseases (accounting for around 80% of deaths), majority caused by cancer, cardio- and cerebral-vascular disease with other dominant health problems that include stroke, diabetes mellitus and accidents (WPR, 2019).

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