Critics blast NHI premium plan
　

UNEQUAL? : The DOH plan fails to resolve the problem of the rich not paying their fair share of the health insurance program, critics of the plan said yesterday
　

By Shelley Huang
STAFF REPORTER
Tuesday, Feb 17, 2009, Page 2
　

Civic groups spoke out yesterday against the Department of Health’s (DOH) plan to base health insurance premiums on total personal income, saying the plan was filled with loopholes and designed to treat the working class like ATMs.

Department officials met yesterday with the National Health Insurance (NHI) Supervisory Committee to discuss a proposed amendment to the National Health Insurance Act (全民健康保險法) that would calculate an individual’s NHI premium on his or her total income, rather than monthly income.

The difference between the two, as defined by the Ministry of Finance, is that the total personal income includes year-end bonuses, stocks, dividends, interest and rent, as well as monthly salary from employers.

Under the DOH’s proposed “1.5 Generation NHI Act,” individuals would have to make a second payment — a “supplementary premium” — if they earn more than NT$180,000 (NT$5,300) in non-monthly income.

The premium rate for the supplementary premium, however, would be 1.8 percent, much lower than the premium based on monthly salary.

Critics lambasted the plan at a joint press conference held by the National Health Insurance Civic Surveillance Alliance, the League of Welfare Organizations for the Disabled and Taiwan Association of Family Caregivers. They said individuals could legally avoid paying high premiums right now by colluding with their employers to lower their insured amount by having a lower monthly salary in return for more non-monthly income such as year-end bonuses.

“Although the proposed act will include non-monthly income in the calculation of NHI premiums, the plan still fails to solve the problem of getting the rich to pay more in premiums,” alliance spokesperson Eva Teng (滕西華) said.

For example, a person who earned NT$45,800 per month would have to pay a supplementary premium if he or she earned more than NT$729,600 (NT$45,800 x 12 months + NT$180,000 minimum) in total personal income this year, Teng said.

“If the total personal income exceeds this amount, then the person’s total personal income would be subjected to a 1.8 percent premium rate. For the super-rich, however, a 1.8 percent premium rate is not fair,” she said.

The civic groups say a “2nd Generation NHI Act,” which would calculate premiums based on total income per household, would be fairer than the DOH’s proposal because it would take into consideration the number of dependents a wage earner has, among other factors, and would reflect the actual income earned.

Bureau of National Health Insurance chief executive officer Chu Tzer-ming (朱澤民) said the “2nd Generation NHI Act” proposal was sent to the legislature in 2006, but because it would require amending 105 articles, the 1.5 Generation plan would be an easier step to take in the meantime.

“The [1.5 Generation] proposal would only require amending eight or nine articles of the NHI Act,” Chu said.

“Although some people may think that the 2nd Generation is fairer because the unit of calculation is per household, it would have a bigger impact, especially for single people.”

Chu defended the 1.5 Generation plan by saying that the 2nd Generation would increase the amount of premium that single-person households have to pay by 70 percent, but the 1.5 Generation would affect only 10 percent of the population “at the top of the pyramid.”

The bureau hopes to increase the NHI fund’s revenue through the 1.5 Generation plan by NT$44.4 billion per year.

Public backs China policy: MAC
　

GETTING CLOSER: After economists warned of over-reliance on China’s economy, the MAC said polls had shown most people supported attempts at improving ties
　

By Jenny W. hsu
STAFF REPORTER
Tuesday, Feb 17, 2009, Page 3

Mainland Affairs Council (MAC) Vice Chairman Liu Teh-hsun (劉德勳) said yesterday that the public was confident that cross-strait political stability and economic development will grow in the next four years, adding that the direction of negotiations for a Comprehensive Economic Cooperation Agreement (CECA) between Taiwan and China had been set, although no details have been discussed.

Several leading economists on Sunday warned about the danger of Taiwan’s heavy reliance on China and urged the government to spend more time researching whether China has policies that put Taiwan at a disadvantage.

“Instead of paying attention to the bigger issues, the [Ma Ying-jeou, 馬英九] administration is acting like a beggar, imploring China to allow the import of Taiwanese oranges. Who in their right mind would resort to begging during a trade negotiation?” said Chen Poh-chih (陳博志), chairman of Taiwan Thinktank, adding that Ma’s economic policies had bankrupted the country and increased injustice and disparity.

National Taiwan University professor of economics Kenneth Lin (林尚愷) said Taiwan had become so dependent on China that, “If China catches a cold, Taiwan will end up with vomiting and diarrhea.”

In a compilation of 108 surveys that were given on cross-strait issues last year, MAC said 52 percent to 68 percent of respondents believed cross-strait relations were gradually improving and at least 67 percent were satisfied with President Ma Ying-jeou’s (馬英九) policies toward China.

Despite three days of street protests and massive rallies against a visit by Chinese envoy Chen Yunlin (陳雲林) in November, the MAC still said 56 percent to 58 percent of the public supported the visit and approved of the results of a meeting in which Taipei and Beijing signed four agreements on air and sea shipping, postal services and food safety.

None of the surveys polled the people’s views on how the government handled the protests. It was estimated that more than 100 people, including police officers, were injured in the clash. TV footage showed some police forcefully removing independence supporters and banning the display of Republic of China flags.

The MAC also said the majority of the public lauded the opening of direct cross-strait flights and allowing Chinese tourists to come to Taiwan, with between 60 percent and 67 percent of those surveyed agreeing that the establishment of direct flights boosted Taiwan’s competitiveness.

On the political side, the MAC said that nearly 80 percent agreed with Ma’s policy of “no unification, no independence, no military action” and his stance on maintaining the so-called “status quo.”

228 protesters might throw shoes
　

By Meggie Lu
STAFF REPORTER
Tuesday, Feb 17, 2009, Page 3

“[He] still has to endure [the protests] even if people are going to throw shoes, stones or eggs at him, because the incident is a scar in Taiwan’s history and the president has the obligation to heal the sorrow.”— Lo Shu-lei, Chinese Nationalist Party (KMT) caucus deputy secretary-general

Families of 228 Massacre victims may follow the example of Iraqi journalist Muntader al-Zaidi, who famously threw a shoe at former US president George W. Bush last December, by throwing shoes at President Ma Ying-jeou (馬英九) at this year’s 228 Day Memorial Service, Chinese-language media reported yesterday.

The memorial service, which will be hosted by the 228 Memorial Foundation, will take place this month in Kaohsiung. The Taipei City Government will also host a service the same day in the capital.

Feb. 28, or 228, is a holiday that commemorates the 228 Incident, a massacre that took place in 1947 when Chinese Nationalist Party (KMT) troops suppressed a Taiwanese uprising, leaving tens of thousands dead, missing or imprisoned.

Newspapers yesterday reported that families of the incident’s victims would stage a protest against Ma during the memorial service to express their dissatisfaction with the government and a suggestion by a KMT legislator on Sunday that the holiday be scrapped.

“We have not heard of such plans,” representatives of the 228 Memorial Foundation said. “It is unlikely to happen, as we will have security guards at the event.”

The Presidential Office said yesterday that Ma was willing to face protesters no matter what action they take, as Taiwan needs reconciliation.

Spokesman Wang Yu-chi (王郁琦) said Ma viewed 228 as an important day and that he would do his best to attend both memorial services in Taipei and Kaohsiung despite his busy schedule.

“The president knows some protesters plan to throw shoes at him. This is not the first 228-related activity that he will be attending. During his time as Taipei mayor and KMT chairman, he also participated in several 228 memorial services where protests occurred,” Wang said.

The president, Wang said, would be willing to deal with any impoliteness because “he believes history must be dealt with honestly and that there must be reconciliation among people.”

“The president will do everything in his power to attend the services and we hope the protesters will express their opinions in an appropriate manner,” he said.

KMT caucus deputy secretary-general Lo Shu-lei (羅淑蕾) said the president should endure any planned protests by family members of victims of the incident.

“[He] still has to endure [the protests] even if people are going to throw shoes, stones or eggs at him, because the incident is a scar in Taiwan’s history and the president has the obligation to heal the sorrow,” she said.

However, KMT caucus deputy secretary-general Yang Chiung-ying (楊瓊瓔) urged protesters not to throw shoes.

Following the shoe attack on Bush last year, a German student threw a shoe at Chinese Premier Wen Jiabao (溫家寶) this month during his visit to Britain’s Cambridge University.

Taiwan’s democratic test continues
　

By Christopher Walker Sarah Cook
Tuesday, Feb 17, 2009, Page 8

Since shedding authoritarian rule two decades ago, Taiwan has achieved commendable progress in democracy. On a recent visit, however, it was clear that while democracy continues to flourish, a number of serious concerns have arisen that threaten to shake public confidence in the country’s democratic institutions.

Our meetings with senior officials of both major political parties, as well as leaders of Taiwan’s diverse non-­governmental organizations and academic community, revealed a palpable sense that the political system is becoming less transparent and more exclusive.

Several developments have triggered alarms among Taiwan’s civil society and international observers.

First, the judicial system’s impartiality and ability to hold the current government to account has come into question. The restoration of the Chinese Nationalist Party (KMT) to full political control in the aftermath of President Ma Ying-jeou’s (馬英九) decisive victory in last year’s elections — along with an overwhelming legislative majority for his party — has weakened important checks and balances that had been in place over the previous eight years.

In the months since the KMT retook control, a spate of investigations have been launched against former Democratic Progressive Party (DPP) officials and businesspeople connected to it. The apparent imbalance with which these cases are being pursued raises concerns of selective justice. One prominent lawyer in Taipei describes the phenomenon as a “judicial recession.”

Further exacerbating tension is the country’s politicized, tabloid-style news media, especially the use of certain outlets to discredit (would-be) defendants before they have their day in court. Six 24-hour cable news channels — four KMT-aligned and two favoring the DPP — pump out a steady diet of over-the-top coverage of political and legal scandal. A robust flow of leaks enables a pernicious form of “trial by media” for those pulled into the judicial vortex.

These phenomena came to a head in two recent cases. The first is that of former president Chen Shui-bian (陳水扁). The ultimate decision on the former president’s guilt or innocence will be decided by the courts, as it should be. However, the judicial process requires the utmost scrupulousness to ensure there is neither the fact nor perception of political interference. So far, such care has been lacking. A slipshod switching of judges just before year’s end and a grossly impolitic skit mocking the former president — during a party organized by Ministry of Justice officials — have raised eyebrows at home and abroad about the seriousness of the officials entrusted with handling this sensitive case.

The second case involves the investigation into clashes between police and citizens protesting Chinese envoy Chen Yunlin’s (陳雲林) visit to Taiwan in November. During this historic visit, more than 100 demonstrators and police were injured. Other citizens have complained of official harassment in response to peaceful acts of protest.

The National Police Agency undertook one review shortly after the event, which resulted in mild discipline, followed, incongruously, by promotions of several key officers. It apparently has undertaken a second more comprehensive internal review, but those findings have not been made public.

The Control Yuan is undertaking its own investigation, but the extent to which its findings will be made public is unclear. Perplexingly, the process of such an investigation, or even whether it is taking place at all, remains unknown to even the most well-informed members of Taiwan’s civil society, let alone the public-at-large.

Given the increasing unease with the trajectory of democratic governance in Taiwan, several immediate steps by the authorities to enhance transparency would help lay such concerns to rest.

Comprehensive reports and regular status updates should be published of any investigations carried out by key government bodies, including the Control Yuan, the police and other agencies, irrespective of the political orientation of their subjects.

The authorities should also make a dedicated effort to stop the debilitating cycle of leaks from criminal investigations. Ma and relevant senior officials must make clear that any information improperly dispensed by prosecutors, investigators or any other judicial or law enforcement body will not be tolerated.

Finally, as the current administration makes decisions that will affect generations of Taiwanese to come — particularly in its sensitive cross-Strait negotiations — it should take an inclusive and open posture toward the public. The combination of closed-door talks with the Chinese Communist Party and a dismissive attitude regarding citizen complaints of official abuse risks creating an atmosphere of highhandedness within government and alienation outside it.

Several developments in recent weeks — including a Council of Grand Justices’ decision on the unconstitutionality of recording client-lawyer conversations and the Control Yuan’s public criticism of prosecutorial leaks — are encouraging signs that Taiwan’s self-correcting democratic mechanisms are functioning. Concerns remain, however, over the evenhandedness with which standards of accountability are being applied.

Taiwan has established itself as a democracy whose significance extends far beyond its shores. In a region where the ideals of democracy are directly challenged, fundamental principles of transparency and pluralism need particularly vigorous safeguarding. The current era of closer relations with China’s government, known more for secretiveness and intolerance of dissent than for democratic governance, make these standards even more important for Taiwan.

Christopher Walker is director of studies and Sarah Cook is an Asia researcher at Freedom House.

Ma’s ‘truce’ is working — for Beijing

Tuesday, Feb 17, 2009, Page 8

The truce is working. President Ma Ying-jeou’s (馬英九) water-under-the-bridge approach to relations with Beijing is paying dividends. Cross-strait tensions are easing. Repeat these things often enough, add a dose of wishful thinking, and they may start to have a ring of truth to them.

The problem, however, is that Ma’s strategy is failing. Deplorably.

So far the only indication that rapprochement may be paying dividends is the possibility that Beijing could allow Taiwan to obtain observer status at the World Health Assembly. This would be under an unspecified name, presumably one that would make short shrift of Taiwan’s dignity. Furthermore, that display of “generosity” by Beijing would have to be renewed every year.

Everything else — Taiwan’s international space, the state of its economy, the number of Chinese visiting the country, trade pacts and the military threat the nation faces — either remains as uncertain as it was prior to Ma’s peace bid or, in some cases, has deteriorated.

The Chinese tourists have failed to materialize. The pair of pandas “given” by China were politicized and treated as a mere “domestic” transfer. The trade pacts have been negotiated between party officials rather than on a state-to-state basis and were the result of a less-than-transparent process that puts into doubt their potential for helping the Taiwanese economy.

Meanwhile, National Palace Museum Director Chou Kung-hsin (周�?, who is presently in Beijing negotiating an exchange of exhibits with her Chinese counterparts, has been compelled by Chinese authorities to drop the “national” from her employer’s name as a condition for the talks.

On the military front, while rumors briefly floated that China might cut down on the number of missiles it aims at Taiwan, news emerged last week that the People’s Liberation Army was moving in the opposite direction, with the result that since Ma came into office in May, about 200 more missiles are threatening to rain down on us.

Meanwhile, tipsy with its delusions of peace and convinced that the threat of a Chinese attack has diminished, the Ma administration has cut down on the frequency of military exercises that are crucial to ensure preparedness, while the military — purportedly to limit carbon dioxide emissions — announced it would cut down on its use of live ammunition during some exercises.

Ma has also trumpeted cuts in military personnel, both in response to the alleged emergence of peace in the Taiwan Strait and as part of a plan to create a fully professional army — a pipe dream that will remain unrealized unless the government invests billions of NT dollars into increasing salaries to attract recruits who will otherwise continue to turn to the private sector to make a living.

As if this were not enough, news reports last week said that Chinese intelligence may have attempted to blackmail Taiwanese civil servants to recruit them as spies. A few days later, the Presidential Office was being forced to deny reports that the National Security Council, headed by China-friendly Su Chi (蘇起), had ordered the National Security Bureau (NSB) to stop recruiting Chinese spies. Regardless of whether the order was given or not — and the NSB’s response to the report was insufficient to dispel fears — the fact that such allegations are being floated in the first place is an indication of the new laid-back environment the national security apparatus seems to be operating in — and inevitably undermines morale.

Let’s face it: Despite what Ma says, there is nothing at present to indicate that his peace bid is working for Taiwan. Letting our guard down at this critical juncture is a mistake from which there might no coming back.