Catharina Klein
Research expert covering Japan
Health insurance industry in Japan - statistics & facts
Japan has one of the most rapidly aging societies in the world as the country is seeing a high average life expectancy of over 84 years paired with low birthrates. Consequently, health care and health insurance remain relevant topics in the country.
Japanese health insurance coverage is mandatory for anyone who permanently lives in Japan for three months or more, including non-Japanese citizens. The enrollees are assigned to a system depending on their employment status, age, and residence. The premium rate that insured people need to pay varies between the different systems.
Major health insurance systems in Japan
Health insurance in Japan is divided into three major systems: Employer-based health insurance, national health insurance (NHI), and health insurance for persons 75 years and older. In recent years, most insured people in Japan were covered by employer-based health insurance such as the Japan Health Insurance Association, followed by NHI.
Full-time employees are usually enrolled in employer-based or Social Health Insurance through their employer. The insurance is further divided by the size of the company. Most employer-based insured people are covered by the Japan Health Insurance Association.
The NHI covers self-employed, unemployed, and retired persons under 75 years of age. The enrollees contribute to the plan through premiums, but around half of benefit costs are covered by tax subsidies. Both employer-based and NHI patients are required to pay 30 percent of the total cost of care at clinics and hospitals.
In 2008 health insurance for persons 75 years and older was introduced. This system includes all people in this age group, regardless of employment, moving the older population from NHI to an independent system. Premiums are deducted from the pensions of the enrollees and, the system is also supported by government subsidies.
Private health insurance as part of life insurance in Japan
In recent years, Japan has seen a growing demand for private insurance products that cover risks associated with long life. Private health insurance has been the main driver of growth for Japan's life insurance industry as health insurance currently makes up the largest amount of new individual life insurance policies. Current private health insurances often cover chronic diseases, cancer, and hospitalization.
However, in comparison, private health insurance remains a rather niche sector since the public health insurance system has benefits such as the out-of-pocket pay cap (the average limit on out-of-pocket payments is 90,000 Japanese yen per month, protecting enrollees from financial risks) and extensive coverage of health services.
Major health insurance systems in Japan
Health insurance in Japan is divided into three major systems: Employer-based health insurance, national health insurance (NHI), and health insurance for persons 75 years and older. In recent years, most insured people in Japan were covered by employer-based health insurance such as the Japan Health Insurance Association, followed by NHI.
Full-time employees are usually enrolled in employer-based or Social Health Insurance through their employer. The insurance is further divided by the size of the company. Most employer-based insured people are covered by the Japan Health Insurance Association.
The NHI covers self-employed, unemployed, and retired persons under 75 years of age. The enrollees contribute to the plan through premiums, but around half of benefit costs are covered by tax subsidies. Both employer-based and NHI patients are required to pay 30 percent of the total cost of care at clinics and hospitals.
In 2008 health insurance for persons 75 years and older was introduced. This system includes all people in this age group, regardless of employment, moving the older population from NHI to an independent system. Premiums are deducted from the pensions of the enrollees and, the system is also supported by government subsidies.
Private health insurance as part of life insurance in Japan
In recent years, Japan has seen a growing demand for private insurance products that cover risks associated with long life. Private health insurance has been the main driver of growth for Japan's life insurance industry as health insurance currently makes up the largest amount of new individual life insurance policies. Current private health insurances often cover chronic diseases, cancer, and hospitalization.
However, in comparison, private health insurance remains a rather niche sector since the public health insurance system has benefits such as the out-of-pocket pay cap (the average limit on out-of-pocket payments is 90,000 Japanese yen per month, protecting enrollees from financial risks) and extensive coverage of health services.
