Finishing COVID Subsidy

Ministry of Health, Labor and Welfare announced that it would terminate its subsidy for patients of COVID-19 at the end of March. Considering decrease of patients as infection has passed the peak of winter, the ministry decided to get back to normal medical posture, treating the disease as same as other infectious diseases. Reflecting booming economy with rallying stock market and trend of wage hike, the government of Japan no longer encourages consumption to revitalize Japanese economy as they did a few years ago.

The government of Japan shifted its measures dealing with COVID-19 from the category 2 to the category 5 based on Infectious Disease Prevention Act last April. While the government is required to oversee medical treatment such as mandatory hospitalization of patients in the category 2, it no longer intervenes in medical service in the category 5, urging each medical organization independent decision on dealing with the patients. The government eventually loosen the regulation since entering the category 5.

 

Although the government continued to subsidize for medicine in the category 2, covering full cost of medication, it began to demand patients to pay for a part of the cost last October and the cost will not be different from other diseases, requiring patients to pay for 10% to 30% of medical fee. According to a report of Asahi Shimbun, the cost for Molnupiravir, oral therapeutic drug for the patients with risk of severity, will rise from current ¥9,000 to ¥28,000.

 

The subsidy for hospitalization was reduced from monthly ¥20,000 to ¥10,000 last October. That support will be discontinued in April or later. The subsidy for medical institutions which offered beds for COVID patients will also be abolished. People who had a shot of vaccine need to pay for it, except elder people over 65 or patients with basic disease between 60 and 64.

 

According to the survey of MHLW, the patients in fixed points increased from last December and hit a peak in late-January or early February, then they are in a trend of decreasing now. The ministry recognizes that Japan has passed the 10th wave of infection and it is time for easing regulations.

 

The government of Japan has been dealing with COVID-19 with measures for economic stimulation, since businesses were damaged by governmental regulations for containing infection. But the subsidy for the firms stopped their operation or for stabilizing employment of small or mid-size businesses was mostly finished last year. Subsidies for people’s health is also ready to be finished.

 

Prime Minister Fumio Kishida stresses the chance to get rid of deflations, however, it is still necessary for the government take a close look at how current inflation affects people’s life and whether increasing cost for preventing or treatment for COVID may cause resurge of infection.

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