Takaichi Leaves Door Open to Raising Japan’s High-Cost Medical Expense Cap

Overview

• Answering a question from Constitutional Democratic Party leader Yoshihiko Noda, Prime Minister Sanae Takaichi declined to rule out higher patient payments under the high-cost medical expense program.
• She said the government will carefully study how to share rising costs according to capacity to pay while preventing excessive burdens on patients.
• Her stance contrasts with her Liberal Democratic Party leadership campaign response, where she opposed raising the cap.
• Takaichi has also pledged to launch a bipartisan national council of experts to review the fairness and sustainability of social security as total benefits are projected at about ¥140 trillion in fiscal 2025.
• Policy options under discussion include a refundable tax credit, reflecting financial investment income in out-of-pocket charges for those 75 and older, and removing insurance coverage for drugs similar to over-the-counter products, proposals that have drawn concern about care avoidance and recall past pushback on this program’s revisions.