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

Author/Editor:

Masahiro Nozaki ; Kenichiro Kashiwase ; Ikuo Saito

Publication Date:

August 4, 2014

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 2014/142

Subject:

English

Publication Date:

August 4, 2014

ISBN/ISSN:

9781498365277/1018-5941

Stock No:

WPIEA2014142

Pages:

39

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