Government Increases Payment for Medical Services

The government of Japan decided to raise payment for medical service by 3.09 percent in FY2026. It is for the first time in these thirty years that growth of the payment exceeds three percent. Given overwhelming price inflation in Japanese economy, Sanae Takaichi government hopes to improve the situation of hospitals most of which are having difficulties in management.

To provide comprehensive medical treatment for all the nationals, the government of Japan holds examination for medical doctors, nurses or pharmacists to issue licenses every year. Article 19 of Medical Practitioner’s Act provides that a medical doctor cannot refuse a demand of patient for having medical treatment. Meanwhile, the government guarantees payment for those medical workers as reward for providing medical treatment.

 

With evolution of medical study or advanced technology, medical treatment has rapidly been improved and its cost is mostly unaffordable for the patient. So, about a half of medical cost is covered by universal health insurance. National and local government cover about forty percent of it. The patient pays the rest of ten percent at the counter of medical institution.

 

Medical institutions submit receipts of their medical treatments to organizations for checking and payment. Those organizations are Health Insurance Claims Review and Reimbursement Services for salary workers and National Health Insurance Organization for small and midsize business owners. Medical institutions receive the reward from those two organizations.

 

In the review of payment for medical service for FY2026, Prime Minister Takaichi decided upsurge of the payment in a discussion with Minister of Finance, Satsuki Katayama, and Minister of Health, Labour and Welfare, Ken-ichiro Ueno, on December 19th. While the main body of the payment is growing 3.09 percent, the payment of medicines will be reduced by 0.8 percent. The total payment for two categories will rise for the first time since FY2014.

 

It is likely that Takaichi thought reward for medical workers should be raised as price inflation puts pressure on each household. It has recently been reported that local hospitals are so financially tight that they cannot repair their medical equipment or buildings. Receiving request from association of medical doctors, the Liberal Democratic Party (LDP) has been pressuring the government to accumulate budget for medical services.

 

Growth of payment for medical service will require greater payment of patients, who owe ten percent of medical cost. Main users of medical insurance are aged people and the insurance is supported by young and middle agers. The coalition partner of the LDP, Japan Innovation Party (JIP) demands lightening premium of health insurance. The discussion for affordable health care will continue between the LDP and JIP.

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