Catharina Klein
Research expert covering Japan
Medication and medical treatments in Japan - statistics & facts
The high life expectancy of the Japanese population raises new challenges for Japan's healthcare system but also creates opportunities for medical and pharmaceutical industries due to the increasing demand for medical treatments among the aging population.
The production value of drugs in Japan indicated a continuous growth of the industry, reaching close to ten trillion Japanese yen in recent years. Oncology drugs had the largest production value. In Japan, cancer remains by far the leading cause of death, and with the estimated incidence rate of several types of cancer, such as breast cancer, increasing, there is a growing need for cancer treatments and oncology drugs. Other drugs with major production value included central nervous system agents and cardiovascular agents, underlining the increase in age-related health issues.
Health insurance is mandatory for everyone living permanently in Japan. There are different types of insurance depending on the occupation, age, and residence of the enrollee. The national health insurance covers most Japanese residents and contributes 70 percent or more of medical and prescription drug costs. The remaining 30 percent must be covered by the patient. An upper monthly limit for the costs, which vary depending on income, exists to protect enrollees from catastrophic costs. Once the cap is reached, there are no more copayments from the patient. However, according to a recent survey, most respondents stated that they believe that the cost of drugs prescribed by doctors for life-threatening diseases and with few patients should be entirely covered by public health insurance.
Furthermore, the increasing awareness of health in recent years has led to an expansion of the Japanese dietary supplements market. However, the sales notably fell after a recent scandal at the beginning of 2024, when some people reported health issues after taking red yeast rice dietary supplements from Kobayashi Pharmaceutical.
Health insurance and costs of medication
In Japan, fees for all health services, including medical procedures and medication, are negotiated every two years between the Ministry of Health, Labour and Welfare and physicians. The set fees apply in all prefectures of the country.Health insurance is mandatory for everyone living permanently in Japan. There are different types of insurance depending on the occupation, age, and residence of the enrollee. The national health insurance covers most Japanese residents and contributes 70 percent or more of medical and prescription drug costs. The remaining 30 percent must be covered by the patient. An upper monthly limit for the costs, which vary depending on income, exists to protect enrollees from catastrophic costs. Once the cap is reached, there are no more copayments from the patient. However, according to a recent survey, most respondents stated that they believe that the cost of drugs prescribed by doctors for life-threatening diseases and with few patients should be entirely covered by public health insurance.
Rising popularity of alternative medicine
Alternative medical treatments such as acupuncture and physio therapeutic bodyworks such as judo therapy have seen an increase in practitioners over the past decade. If certain conditions are met, such as a letter of approval from an insurance doctor or a receipt, acupuncture, moxibustion as well as shiatsu and anma massages can be covered by health insurance benefits for medical care expenses.Furthermore, the increasing awareness of health in recent years has led to an expansion of the Japanese dietary supplements market. However, the sales notably fell after a recent scandal at the beginning of 2024, when some people reported health issues after taking red yeast rice dietary supplements from Kobayashi Pharmaceutical.
