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

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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.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840802600228

Affiliations: 1: Department of Leisure Business Management, NanKai University of Technology, Taiwan, ROC 2: Department of Public Health, Oregon State University, Corvallis, OR 97331, USA 3: Department of Business Administration, NanKai University of Technology, Taiwan, ROC

Publication date: April 1, 2011

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