Japan Insurance Law OKd, With Revised Drug Fees

After more than six months, Japan's Diet (parliament) has passedlegislation to revise the Health Insurance Law, from September 1. The bill, which was supported by the coalition Liberal Democrats, Social Democrats and New Party Sakigake, will more than double medical costs paid for by the public.

An earlier plan would have required extra payments of 400 yen ($3.43) from outpatients prescribed two or three drugs, 700 yen from those prescribed four-five drugs and 1,000 yen from those prescribed six or more drugs. These rises have been fixed at 30 yen, 60 yen and 10 yen per day, respectively. Those prescribed only one drug will not be charged extra, and those aged six or under and 70 or older on low income will be exempt from the added charges, following SDP demands.

Drugs account for almost one-third of Japan's health care budget; the aim of the move is to make patients more aware of their costs. Drugs have not previously been itemized in the portion of the bill paid by patients, and the rises are expected to make them more questioning of medicines prescribed by their doctors. Under the present system, Japanese doctors and hospitals derive much of their income from the price differential (yakkasa) between the wholesale price and the official reimbursement price.