Medical Costs Reach 49.2 Trillion Yen: Explaining the Increase in High-Cost Medical Care Ceilings and System Reforms

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According to the latest data from the Ministry of Health, Labour and Welfare, Japan's total medical costs reached 49.2 trillion yen, an increase of about 1.3 trillion yen from the previous year. The growth rate was 2.6 percent. Although the number of days of medical treatment decreased, the rise in medical costs per day pushed up the total. Medical costs for those aged 75 and over were 20.3 trillion yen, accounting for 41.3 percent of the total, with per-person costs of 989,000 yen, about 3.8 times that of those under 75. From August 2026, the high-cost medical care system will be revised, raising the ceiling on out-of-pocket payments while introducing a new annual cap for long-term patients. Furthermore, under the medical insurance system reform law enacted in fiscal 2026, revisions to benefits for over-the-counter similar drugs, reflection of financial income of late-stage elderly, in-kind provision of childbirth costs, and expansion of insurance premium reductions for households raising children are planned.

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