Japan’s Federation of Health Insurance Associations announced on the 25th that medical aid for the elderly in the previous year reached an all-time high of 3.8591 trillion yen, up 5.7% from the previous year.
The average premium rate rose 0.04%p (point) to 9.31%, setting a new high, and it is expected to rise once again to 9.34% this year.
In particular, as senior citizens’ subsidies account for 40% of health insurance finances, the structure of active generations taking on medical expenses for the elderly is deepening.
In addition to health insurance, the government’s overall medical expenses are also increasing. According to the Ministry of Health, Labor and Welfare, the amount of medical care paid to Japanese medical institutions last year totaled 48 trillion yen, up 1.5 percentage points from the previous year, marking the fourth consecutive year of record-breaking.
In particular, as the Dankai generation (born in 1947-1949) has reached the age of 75 or older, medical expenses for the elderly have accelerated, exceeding 40% of the total for the first time. In 2010, the late elderly accounted for 12.7 trillion yen in Japan’s medical expenditure, but recorded 19.6 trillion yen last year.
This year, large Japanese companies raised their wages by more than 5% on average in Spring Tu. However, the increase in real income was limited as the premium burden increased.
As the burden on the younger generation intensifies, the Japanese government is also devising alternatives. From next month, it plans to increase the burden on some late-stage seniors depending on their income level, and introduce a differential insurance premium assessment system according to income and asset size by 2028.
The Nihon Keizai Shimbun pointed out, “The current generation’s premium burden continues to support the elderly medical system,” adding, “This could hinder the effect of wage hikes, such as the flow of increased consumption.”
EJ SONG
US ASIA JOURNAL
