114 New NHI Policy: Suspension of Insurance for Study Abroad and Working Holiday Travel to Be Abolished

The Ministry of Health and Welfare announced today that, according to the amended Enforcement Rules of the National Health Insurance Act, the suspension-and-reinstatement system will be abolished starting December 23.

Anyone holding household registration of the Republic of China, whether inside or outside the Taiwan-Penghu-Kinmen-Matsu area, must continuously pay National Health Insurance premiums; those who have already suspended their insurance will remain suspended, but after reinstating insurance on the day of return, they will no longer be allowed to suspend again.

The Little Story Behind the NHI Suspension-and-Reinstatement System

For travelers like us who enjoy long-term independent travel, studying abroad, and participating in Working Holiday Visa programs, previously, as long as one went abroad for more than 6 months, most people might apply to suspend their insurance to avoid paying for something they could not use.

Among us travelers, there even emerged many tutorials on exploiting this system. For example, after suspending insurance, if one needed to see a doctor abroad, one could take the hospital bill back home, reinstate insurance, and then apply for NHI subsidies. This made the system, which appears to violate the spirit of National Health Insurance, a long-standing source of controversy.

How Do the New Suspension-and-Reinstatement Rules Affect Overseas Plans?

1. Continuous Payment:

According to the new regulations issued by the Ministry of Health and Welfare, Executive Yuan of the Republic of China, anyone with household registration of the Republic of China must continue to pay NHI premiums even if abroad for a long time, and in the future will not be allowed to suspend payment of NHI premiums through the suspension-and-reinstatement mechanism.

2. Changes to Suspension and Reinstatement:

Under the current regulations, those abroad for more than 6 months may apply to suspend insurance, and after returning must wait 3 months before applying to suspend again. However, under the new amendment, this system will be abolished.

Court Ruling and Legal Background

On December 23 of the 111th year of the Republic of China, our Constitutional Court ruled that the current NHI suspension-and-reinstatement system was unconstitutional because it lacked legal authorization. The Ministry of Health and Welfare was required to complete the amendment within 2 years to maintain the system’s legality.

Specific Changes in the Amended Provisions

Liu Yujuan, Director-General of the Department of Social Insurance of the Ministry of Health and Welfare, stated that the focus of this amendment is to delete the suspension-and-reinstatement application and related dependent attachment provisions, and to provide transitional clauses for those who have already suspended insurance, ensuring that their rights are not affected during the transition period.

Transitional Clauses:

• Those who suspended insurance before December 22 must reinstate insurance on the day of return in accordance with the original regulations and may not suspend again.
• Government personnel stationed abroad and their accompanying spouses and children must reinstate insurance on the day of return and will no longer be allowed to suspend again.

Impact and Recommendations

These new policies may change the outdated understanding of long-term independent travelers, students abroad, and working holiday participants. It is recommended that these groups plan their finances in advance and ensure they continue to pay premiums while abroad to avoid unnecessary trouble in the future.