Japanese Health Care Reform Is Coming -By P Reed Maurer

In April 1997, Japan's Ministry of Health and Welfare will implement health care reforms that will change the paradigm of medical care delivery and reimbursement in that country. In this article, I will describe the driving forces behind the reform movement, enumerate the alternatives which are under consideration and forecast the likely outcome.

It is naive to assume that the movement for health care reform in Japan is driven solely by the need to reduce costs. This society spends 7% of its national income on health care, about half the US level; costs are not out of control.

However, as medical expenses rise faster than income, the government and other insurers are concerned about the growth rate of health care costs. As Japan's population ages more rapidly than any other society in history, cost increases are inevitable. Another pressure factor is the rising expectation of quality care by young and old alike. Quality care is more expensive.