Health Spending in Japan: Macro-Fiscal Implications and Reform Options
40 Pages Posted: 27 Aug 2014
Date Written: August 2014
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: Health care spending, Japan, Aging, Fiscal policy, Public health, Fiscal reforms, health spending, long-term care, health care, capita health spending, budget caps, health system, public health spending, price controls, health insurance, long-term care spending, private spending, public spending, demand for health care, health care system, health care providers, hospital beds, public health insurance, insurance system, demand for health, public insurance, fee-for-service, pocket payments, public insurance system, public hospitals, health providers, health care systems, health care reforms, price control, care systems, elasticity of health care, public long-term care insurance, risk factors,
JEL Classification: H51, I10, I13, I18
Suggested Citation: Suggested Citation