Japanese ministers agree to raise medical service fees

Japanese Finance and Health Ministers have agreed to raise the core portion of medical service fees by 3% or more for the first time in 30 years. This measure aims to help hospitals manage rising prices and boost wages for medical workers. Fees will increase by 2.22% in fiscal 2026.

The Japanese government has decided to raise medical service fees to address mounting inflationary pressures. Finance Minister Satsuki Katayama and Health Minister Kenichiro Ueno reached an agreement on Wednesday, December 24. This will result in a 2.22% increase in medical service fees for fiscal 2026, the first such rise in 12 years.

The main component, which primarily covers labor costs for medical workers, will see an annual average increase of 3.09% over the two years starting from April next year. Meanwhile, official drug prices will be lowered by 0.87%. This adjustment to the core fees by 3% or more marks the first time in 30 years and is intended to help hospitals cope with escalating costs and improve wages for medical staff.

Additionally, the maximum monthly out-of-pocket medical expenses will be raised by up to 38%, depending on income, potentially as early as August next year. Annual caps for those undergoing long-term treatment will also be introduced; for the average income bracket of ¥3.7 million to ¥7.7 million, the yearly maximum is ¥530,000.

Fees paid to nursing care providers will increase by 2.03%, and those for disability welfare services by 1.84%. These changes represent a balanced effort to sustain the healthcare sector while maintaining access for citizens.

Makala yanayohusiana

Illustration of Bank of Japan rate hike to 0.75% amid yen depreciation and market unease.
Picha iliyoundwa na AI

Bank of Japan raises rates as yen weakens

Imeripotiwa na AI Picha iliyoundwa na AI

The Bank of Japan raised its policy rate to 0.75% from 0.5% on December 20, marking a 30-year high aimed at curbing inflation. However, the yen weakened sharply against the dollar and other major currencies. Markets reacted with sales due to the BOJ's vague outlook on future hikes.

Following the fiscal 2026 budget's record ¥39.06 trillion allocation for social security, Japan's government has finalized two key reform measures to curb soaring medical costs, including higher patient copayments and limits on insurance for certain drugs. Officials emphasize the need for clear explanations to secure public understanding.

Imeripotiwa na AI

The Japanese government adopted its fiscal 2026 budget bill on Friday, allocating a record ¥39.06 trillion for social security-related expenses, an increase of ¥760 billion from fiscal 2025. This rise reflects growing medical and nursing care costs due to an aging population. However, efforts to ease the health insurance premium burden on the working generation remain limited.

Nine patients in Hong Kong avoided higher emergency fees when new hospital charges took effect on New Year's Day. Hospital Authority chief executive Libby Lee reported a smooth rollout. The changes target sustainability for the taxpayer-subsidized public healthcare system.

Imeripotiwa na AI

At a New Year event in Tokyo, Japanese business leaders expressed optimism about continuing wage increases in this year's spring labor negotiations. Many aim to match or exceed last year's average of 5.39% at major firms. Extending gains to small and midsize companies remains a key challenge.

Core inflation in Tokyo slowed to a 15-month low in January due to gasoline subsidies and easing food price pressures, offering some relief to consumers. Yet an underlying gauge excluding fresh food and fuel remained above the Bank of Japan's 2% target, indicating continued progress toward sustainable price growth.

Imeripotiwa na AI

Core consumer prices in Tokyo rose 2.3 percent year-on-year in December, slowing from 2.8 percent in November but staying above the Bank of Japan's 2 percent target. The figure fell short of market expectations of 2.5 percent, triggering yen weakness. As a leading indicator for nationwide trends, the data will factor into the BOJ's next policy meeting.

Alhamisi, 15. Mwezi wa kwanza 2026, 09:54:55

Tokyo taxi fares eyed for around 10% hike

Jumatano, 31. Mwezi wa kumi na mbili 2025, 01:01:16

Government announces 12.94% UPC increase for 2026 following court mandates

Jumamosi, 27. Mwezi wa kumi na mbili 2025, 15:04:37

Japan secures support for ¥122 trillion FY2026 budget amid market concerns

Ijumaa, 26. Mwezi wa kumi na mbili 2025, 06:54:47

Stable hospital tariffs for 2026 worry French hospitals

Ijumaa, 26. Mwezi wa kumi na mbili 2025, 03:01:51

Japan to increase science grants budget by ¥10 billion

Alhamisi, 25. Mwezi wa kumi na mbili 2025, 02:00:16

Japan expects economic growth to accelerate next year with fiscal stimulus

Jumamosi, 20. Mwezi wa kumi na mbili 2025, 10:14:59

BOJ 0.75% Rate Hike: Ueda's Outlook, Market Reactions, and Bank Responses

Ijumaa, 19. Mwezi wa kumi na mbili 2025, 05:37:41

Japan ruling bloc approves FY2026 tax plan with household support focus

Alhamisi, 18. Mwezi wa kumi na mbili 2025, 13:43:59

Bank of Japan raises policy rate to 0.75%

Jumamosi, 13. Mwezi wa kumi na mbili 2025, 07:48:49

Japan's finance minister signals support for BOJ rate hike

 

 

 

Tovuti hii inatumia vidakuzi

Tunatumia vidakuzi kwa uchambuzi ili kuboresha tovuti yetu. Soma sera ya faragha yetu kwa maelezo zaidi.
Kataa