GOVERNMENT OKS EXTRA COST FOR DRUGS SIMILAR FOR OVER - THE - COUNTER MEDICINES - TOKYO JAPAN

GOVERNMENT OKS EXTRA COST FOR DRUGS SIMILAR FOR OVER - THE - COUNTER MEDICINES - TOKYO JAPAN 

@Jr_Paku Midin Channel

TOKYO

The Japanese government has approved a bill to introduce a system requiring patients prescribed drugs similar in ingredients and efficacy to over-the-counter medicines to pay an additional 25 percent of the medication costs.

By reforming the medical insurance system, Prime Minister Sanae Takaichi's government plans to strictly apply a mechanism reflecting financial income, such as stock dividends, in determining the share of medical costs borne by people aged 75 or older.

The move is designed to ease insurance premium burdens on the working generation, but it will raise out-of-pocket costs for some people, as Japan is facing a rapidly aging population and declining birthrate.

Japan's national burden rate for fiscal 2026, covering taxes and social insurance premiums, is projected at nearly 50 percent, higher than the United States.

The government, meanwhile, considered a provision to review the cap under the high-cost medical care system at least every two years, but it dropped legislation after ruling party talks, fearing it could create the impression that increases would become routine.

The government specified in the bill that any review of the burden should take into account the impact on the household finances of patients undergoing long-term treatment.

The new system for additional payments for OTC-like drugs is targeted to begin next March.

It is expected to cover around 1,100 items with 77 ingredients, including Loxonin tablets for pain and fever, and Allegra tablets for pollen allergy. Children and patients with cancer or intractable diseases will be excluded.

The mechanism for factoring in financial income when calculating the share of medical costs and insurance premiums for people aged 75 or older is part of the government's policy of determining burdens based on ability to pay.

The government aims to establish a system allowing local authorities to obtain financial income data online from financial institutions and launch it around 2030.

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@Jr_Paku Midin Channel