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

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Health Spending in Japan : Macro-Fiscal Implications and Reform Options
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Volume/Issue:
2014/142
Series:
IMF Working Papers
Author(s):
Masahiro Nozaki, Kenichiro Kashiwase, and Ikuo Saito
Publisher:
INTERNATIONAL MONETARY FUND
Published Date:
August 2014
DOI:
http://dx.doi.org/10.5089/9781498365277.001
ISBN:
9781498365277
ISSN:
1018-5941
Page:
39
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 31/2 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.
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