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The willingness to pay for the health care under Taiwan's national health insurance system

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  • Wen-Yi Chen
  • Chunhuei Chi
  • Yu-Hui Lin

Abstract

In this study, we utilized the nested multinomial logit model to estimate the Willingness To Pay (WTP) values for different National Health Insurance (NHI) coverage plans in Taiwan. The WTP value for having care from clinics in a Hospital Care Only (HCO) plan is NT$178 (US$6) per person/month. The WTP value for having care from hospitals in a Clinic Care Only (CCO) plan is NT$1342 (US$43) per person/month. The WTP value for the NHI with a Universal Coverage (UC) is NT$1540 (US$49) per person/month. The figure NT$1540 (US$49) is equivalent to 8.77% of monthly household income, much higher than the new premium rate of the new NHI tax (2.5-4% of monthly household income) proposed by the Taiwan's government. Our result suggests that Taiwan's government may increase the new premium rate further in order to make Taiwan's NHI financially more sustainable.

Suggested Citation

  • Wen-Yi Chen & Chunhuei Chi & Yu-Hui Lin, 2009. "The willingness to pay for the health care under Taiwan's national health insurance system," Applied Economics, Taylor & Francis Journals, vol. 43(9), pages 1113-1123.
    • Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1113-1123
    DOI: 10.1080/00036840802600228
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