Health Spending in Japan: Macro-Fiscal Implications and Reform Options

Masahiro Nozaki, Kenichiro Kashiwase and Ikuo Saito

No 2014/142, IMF Working Papers from International Monetary Fund

Abstract: Health spending has risen rapidly in Japan. We find two-thirds of the spending increase over 1990–2011 resulted from ageing, and the rest from excess cost growth. The spending level will rise further: ageing alone will raise it by 3½ percentage points of GDP over 2010–30, and excess cost growth at the rate observed over 1990–2011 will lead to an additional increase of 2–3 percentage points of GDP. This will require a sizable increase in government transfers. Japan can introduce micro- and macro-reforms to contain health spending, and financing options should be designed to enhance equity.

Keywords: WP; cost growth; cost; profile shift; Japan; health spending; long-term care; fiscal policy; spending ratio; health status; health outcome; spending data; health system; spending increase; copayment rate; health risk; budget target; LTC spending; health spending growth; Health care spending; Aging; Health care; Global (search for similar items in EconPapers)
Pages: 39
Date: 2014-08-04
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Citations: View citations in EconPapers (5)

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