PMID: 11911039Mar 26, 2002Paper

Healthcare utilization patterns and risk adjustment under Taiwan's National Health Insurance system

Journal of the Formosan Medical Association = Taiwan Yi Zhi
Ray-E ChangTung-Liang Chiang

Abstract

Some recent proposals for reform of Taiwan's National Health Insurance (NHI) system include risk adjustment mechanisms. However, there is a paucity of research on risk adjustment and its utilization in health insurance systems in Taiwan. The purposes of this study were to determine the healthcare utilization pattern and to develop a risk assessment model for capitation payments under NHI. The individual enrollment and medical expenditure data for 1996 and 1997 were obtained from the Bureau of NHI. A random sample of 360,037 beneficiaries was divided into two sub-samples: one for model building and one for validation. Linear regression was employed to estimate the relationship between each individual's 1997 total expenditure and risk adjusters, i.e., age, gender, prior years' medical spending, and catastrophic status. The 10- to 14-years age group had the lowest total expenditure of $NT 3,055 ($US 1 = $NT 27.5 in 1996) in 1996, while the 65 years and over age group had the highest at almost 10 times more than the lowest. The distributions of total expenditure for both genders followed the familiar J-shaped curve. The average of the total expenditure of individuals with a catastrophic diagnosis was more than 17 times that of indi...Continue Reading

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