Prime Minister Sanae Takaichi answers questions at a meeting of the Upper House Committee on Health, Labor and Welfare inside the Diet on the morning of May 28. (©Sankei/Ataru Haruna)
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On May 28, the Upper House Committee on Health, Labor and Welfare began deliberations on a bill to revise the Health Insurance Act and other laws as part of the government's medical insurance reforms. Prime Minister Sanae Takaichi attended the session.
The committee was expected to vote on the bill after questioning, with approval likely by a majority including the ruling parties. The legislation is expected to be enacted as early as May 29 at a plenary session of the Upper House.
The bill would introduce a new system requiring patients prescribed "OTC-like drugs"—prescription medicines with ingredients and effects similar to over-the-counter drugs—to pay an additional 25% of the drug cost. The government aims to curb spending under public medical insurance and use the savings to help lower social insurance premiums for working-age people.
Higher Drug Costs for Lower Premiums
Some patients, however, have voiced concern that the change will leave them paying more out of pocket.
The Ministry of Health, Labor and Welfare is considering applying the surcharge to about 1,100 products covering 77 active ingredients. They include Loxonin tablets, used to reduce fever, inflammation, and pain, and Allegra tablets, commonly used to treat hay fever.
The government aims to launch the system in March 2027. For working-age patients who typically pay the standard 30% copay, out-of-pocket spending on the affected drugs would rise to 1.6 times the current level. Government estimates say the change would cut medical spending by about ¥90 billion ($565 million) and reduce annual social insurance premiums by roughly ¥400 ($2.50) per person.
The bill would also introduce a system to better reflect financial income, such as stock dividends, when determining the out-of-pocket medical expense ratio for people aged 75 and older. Municipalities would be allowed to obtain financial income data online from financial institutions.
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Author: The Sankei Shimbun
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