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Japan Health System Overview


Population – Cancer and Chronic Diseases 

  • Estimated population of 127m in 2018 (1.65% of the world’s population)1 
  • Top causes of mortality include Malignant Neoplasm (tumor), Heart Disease (excluding hypertensives), Dementia, Cerebrovascular Disease and Pneumonia2
  • In 2018 the most common cancers were Lung, Colorectum, Stomach, Prostate and Breast3
  • There are an estimated 883,000 new cases of cancer and 409,000 deaths from cancer per year4 

Healthcare System Overview5 

  • The Ministry of Health, Labour and Welfare (MHLW) is responsible for the health system in Japan
  • Health insurance enrolment in Japan is mandatory with more than 3000 organisations providing insurance with the two main categories being through employers or the National Health insurance scheme
  • The national uniform fee schedule dictates prices, conditions for payment and co-payment levels for health services. Most health services and products are 70-90% covered by health insurance 
  • People can choose their clinicians and facilities. Most health facilities are privately owned (e.g. about 80% of hospitals are private) however there are regulations around the number of hospital beds.
  • A National Health Insurance Drug Price list items that are approved for insurance coverage and the price which is regularly reviewed
  • Medicine prices are set through comparator pricing method (where a comparable medicine already) or a cost calculation method based on manufacturer’s costs to supply the medicine
A breakdown of the structure of the Ministry of Health, Labour, and Welfare


Health Costs and Funders6  

  • In 2019 total health spending was ~$600 billion (USD)7,  equating to $4,928 per person and 10.9% of GDP
  • The annual growth rate of expenditure per capita was 1.8% between 2013-2018
  • About 85% of expenditure costs are covered by the Government and mandatory insurance and 13% is covered by out of pocket costs.
  • Major health expenditure cost categories include 28% for hospital inpatient, 29% for outpatient care and 20% for medical goods


Major Challenges8

  • Low birth rate and ageing population
  • Rising burden of chronic disease
  • Control healthcare expenditure through review of benefit and burden for healthcare insurance
  • Efficient system for medical provision under decreasing number of working age group
  • Digitization including integration of various databases

 


Sources:

  1. World Bank Open Data, https://data.worldbank.org/ used in reporting of figures and calculation of percentages.
  2. https://www.mhlw.go.jp/toukei/saikin/hw/jinkou/geppo/nengai19/dl/gaikyouR1.pdf.
  3. Globocan 2018: https://gco.iarc.fr/today/data/factsheets/populations/392-japan-fact-sheets.pdf
  4. Globocan 2018: https://gco.iarc.fr/today/data/factsheets/populations/392-japan-fact-sheets.pdf
  5. Sakamoto H, Rahman M, Nomura S, Okamoto E, Koike S, Yasunaga H et al. Japan Health System Review. Vol. 8 No. 1. New Delhi: World Health Organization, Regional Office for South-East Asia, 2018.
  6. Health at a Glance 2019: OECD Indicators:  DOI:https://doi.org/10.1787/4dd50c09-en
  7. Noting MHLW National Medical Care Expenditure estimate of 42.6 trillion yen (~USD 405 billion) with a different health spend criteria to OECD
  8. OECD (2020), OECD Development Co-operation Peer Reviews: Japan 2020, OECD Development Co-operation Peer Reviews, OECD Publishing, Paris, https://doi.org/10.1787/b2229106-en.; Sakamoto H, Rahman M, Nomura S, Okamoto E, Koike S, Yasunaga H et al. Japan Health System Review. Vol. 8 No. 1. New Delhi: World Health Organization, Regional Office for South-East Asia, 2018.; https://www5.cao.go.jp/keizai-shimon/kaigi/cabinet/2019/2019_basicpolicies_ja.pdf