Health Spending in Japan: Macro-Fiscal Implications and Reform Options

By Masahiro Nozaki, Kenichiro Kashiwase, Ikuo Saito

August 4, 2014

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Masahiro Nozaki, Kenichiro Kashiwase, and Ikuo Saito. Health Spending in Japan: Macro-Fiscal Implications and Reform Options, (USA: International Monetary Fund, 2014) accessed December 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Health spending has risen rapidly in Japan. We find two-thirds of the spending increase over 1990–2011 resulted from ageing, and the rest from excess cost growth. The spending level will rise further: ageing alone will raise it by 3½ percentage points of GDP over 2010–30, and excess cost growth at the rate observed over 1990–2011 will lead to an additional increase of 2–3 percentage points of GDP. This will require a sizable increase in government transfers. Japan can introduce micro- and macro-reforms to contain health spending, and financing options should be designed to enhance equity.

Subject: Aging, Expenditure, Health, Health care, Health care spending, Population and demographics

Keywords: Aging, Budget target, Copayment rate, Cost, Cost growth, Fiscal policy, Global, Health care, Health care spending, Health outcome, Health risk, Health spending, Health spending growth, Health status, Health system, Japan, Long-term care, LTC spending, Profile shift, Spending data, Spending increase, Spending ratio, WP

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/142
Stock No:

WPIEA2014142
ISBN:

9781498365277
ISSN:

1018-5941

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