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Investigation on factor analysis and optimized prevention mechanism for outstanding NHI Payment of Taiwanese companies

Abstract Companies are the commonest debtors among all categories of the insured. This study investigated the possible causes of outstanding NHI payments and thereby to establish mechanisms to prevent and handle such problems. A survey was conducted on 50 samples with an outstanding NHI payments selected with random sampling from companies in Kaohsiung and Pingtung (population). A total of 115 samples without outstanding NHI payments were obtained with convenience sampling. The questionnaire was completed either over the phone or by the samples. Factor analysis, reliability test, T-test, descriptive statistics, one-way ANOVA, and correlation analysis were applied to analyze the data collected. Outstanding payments and interest are required for delayed payments resulting from financial difficulties are the most probable causes of outstanding NHI payments. Failure to report the insured or failure to insure under proper categorization to cause retrieving premium and companies with outstanding records are highly possible causes of outstanding NHI payments. Not receiving payment notification as a result of business suspension or termination, disagreement among shareholders, and change of the responsible person are also possible causes of outstanding NHI payments. This study recommends that debt audits and compulsory actions should be reinforced; and outstanding payment handling strategies and operational mechanisms should be established based on the level of debt-causing factors to reduce debts.