Medical costs drop for first time in 14 years in FY 2016

September 18, 2017

TOKYO- The total amount of money paid to medical institutions in Japan to cover treatment of injuries and diseases fell 0.4 percent from the previous year to 41,286.5 billion yen in fiscal 2016, the health ministry said in a preliminary report Friday.

This was the first decline in 14 years on a preliminary report basis, the ministry said, citing as a major reason a 4.8 pct decrease in drug dispensing costs thanks to price cuts for expensive drugs, including for hepatitis C.

But there is no major change in the uptrend of medical expenses on the back of the country's aging population, observers said.

The overall amount, which does not include costs for treatment shouldered fully by patients and those for diseases and injuries certified as being related to work, represents some 98 percent of Japan's total national medical expenses.

In fiscal 2016, which ended last March, medical expenses for inpatients amounted to 16,544.4 billion yen, accounting for 40.1 pct of the total. Expenses for other patients stood at 14,179.9 billion yen.

Medical costs for dental patients came to 2,874.6 billion yen, and those for dispensing drugs 7,495.3 billion yen.

The decline in drug dispensing costs came as prices of expensive drugs, such as Harvoni for hepatitis C treatment, were reduced by about 30 percent in April last year. Also, the number of users of such drugs decreased. Jiji Press