The National Federation of Health Insurance Societies (Kenporen) has projected a significant rise in the average premium rate for corporate health insurance societies in Japan, reaching an unprecedented 9.32 percent in fiscal 2024. This uptick, announced Tuesday, reflects a 0.05 percentage point increase from the previous fiscal year, driven primarily by heightened contributions to medical care services for the elderly.
According to Kenporen, a group representing health insurance societies catering to employees of large corporations and their families, nearly 90 percent of its member societies are forecasting a financial deficit. Specifically, 1,194 out of 1,379 member societies anticipate operating at a loss, with an estimated ordinary deficit of 657.8 billion yen.
These projections are based on data collected from 1,353 societies regarding their fiscal 2024 budgets. Despite an anticipated 4.5 percent increase in total premium revenue to 8,885.1 billion yen, expenditure growth is expected to outpace this revenue gain. Notably, outlays for contributions to medical care services for the elderly are projected to swell to 3,877.4 billion yen, marking a 4.6 percent increase.
The looming financial challenges facing health insurance societies underscore the growing pressure on Japan’s healthcare system, particularly in addressing the needs of its aging population. As the nation grapples with these escalating costs, policymakers and stakeholders will be pressed to find sustainable solutions to ensure the continued provision of quality healthcare services for all citizens.
