Japan OKs bills to increase health insurance premiums for elderly

TOKYO, May 12– The Japanese parliament on Friday passed bills to increase health insurance premiums for those aged 75 or over who are categorized as middle- and high-income earners. People aged 75 or over who receive over 1.53 million yen in annual pension benefits, or around 40 percent of individuals in this age group, will experience a gradual increase in…

TOKYO, May 12 (Xinhua) — The Japanese parliament on Friday passed bills to increase health insurance premiums for those aged 75 or over who are categorized as middle- and high-income earners.

The change was part of a plan to distribute the financial burden of the country’s social security system more evenly among different generations.

People aged 75 or over who receive over 1.53 million yen (11,360.71 U.S. dollars) in annual pension benefits, or around 40 percent of individuals in this age group, will experience a gradual increase in premiums starting in the fiscal year 2024 which begins next April.

The Japanese government aims to use the revenue generated from these changes to finance its lump-sum childbirth allowance program, which is currently mostly funded by the working-age population, according to local media reports.

To this end, 7 percent of the costs of providing childbirth benefits will be covered by the elderly health insurance system. The childbirth benefit was increased to 500,000 yen per child in April. (1 U.S. dollar equals 134.68 Japanese yen) Enditem