News Regulations03 Jun 2026

Japan:Reforms in health insurance enacted

| 03 Jun 2026

Japan's parliament has enacted reforms in the health insurance segment, that will help reduce medical costs and health insurance premium.

The new bill will result in an increase in patients’ out-of-pocket expenses for prescribed drugs with ingredients and effects similar to those of over the counter (OTC) drugs, reported nippon.com

Beginning March 2027, 25% of the prices of OTC-like drugs will be fully charged to patients as a special fee, while co-payment rates ranging from 10% to 30% will apply to the remaining 75%.

Currently around 1,100 drugs, including moisturisers and hay fever drugs, will be subject to the additional costs but children with intractable diseases will be exempt from the special fee.

The measure is aimed at reducing the country’s medical costs and health insurance premiums paid by working professionals. The reform legislation also calls for childbearing costs to be fully covered by public health insurance gradually starting around 2028 as a way to address the country’s declining birth rate.

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