Japan plans massive cuts in state medical spending

Published: 21-Nov-2005

A long-term healthcare reform plan announced last week by the Japanese government would eventually cut state medical spending by ¥7 trillion (€ 49bn) by raising patients co-payments and creating a separate insurance program for people 75 and older.


A long-term healthcare reform plan announced last week by the Japanese government would eventually cut state medical spending by ¥7 trillion (€ 49bn) by raising patients co-payments and creating a separate insurance program for people 75 and older.

The Ministry of Health, Labour and Welfare aims to keep medical outlays, excluding patient expenses, for fiscal 2025 at ¥49t, down ¥7t on current projections. The new target figure would account for 9% of projected national income, down from the current 10.5% forecast.

Of significance to pharma companies is the inclusion in the plan of proposals to steadily reduce the price paid by the Ministry for locally-produced and imported drugs.

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