A young Japanese career woman, "Masako," married her
fiancé, "Naoki," on May 19. She wore a tiara and a white
wedding dress, and her eyes sparkled with excitement.
Masako—not her real name—had good reason to be joyful. In
addition to marrying a successful young professional, she could look forward
to spending many years with him since the Japanese have one of the longest
life expectancies in the world.
Longevity among the people of Japan is historically due, in part, to a
healthy lifestyle and genetics. But these days it also might be attributed to
the high-quality medical care offered in Japan and to access to that care by
everyone through a universal health insurance system.
Japan's universal health insurance system has been in place since
1961. It covers the entire population—that is, everyone must enroll in
it, and everyone must contribute financially to it depending on their income
The system can be divided into three parts—employee health insurance,
National Health Insurance, and a national health insurance plan for the
Employee health insurance covers people who work for companies, the
government, or private schools. Premiums are based on an employee's
monthly salary. The average contribution is about 4 percent of the salary,
with the employee paying half and the employer paying half. Those covered must
make copayments for inpatient and outpatient medical care. Copayments may also
be required for prescription drugs. Costs are shared by the patients up to a
certain ceiling, after which they receive full coverage.
National Health Insurance covers those who are self-employed (say,
physicians in private practice) and those not employed. The premiums are based
on income and assets. Similar to employee health insurance, individuals share
costs up to a certain ceiling, after which they receive full coverage.
The health insurance program for the elderly is funded by contributions
from employee health insurance, National Health Insurance, and the
Japan's universal health insurance system essentially pays for health
care in Japan since private health insurance is rarely used there. Moreover,
the amount of money the system reimburses doctors and other health care
providers is tightly controlled by the Japanese Health Ministry down to the
smallest detail. Every two years, the ministry and Japan's health care
industry (which includes physicians) negotiate a fixed price for every
procedure and every drug.
Japan's universal health insurance system has a number of
One is "access to high-quality treatment at a low individual cost for
all Japanese citizens," Masanori Nagamine, M.D., told Psychiatric
News. Nagamine is a Japanese psychiatrist affiliated with the National
Defense Medical College near Tokyo.
Another benefit, Nagamine said, is that "patients are able to select
the hospitals or doctors they want to visit. They are not restricted by their
insurance company. They do not need to see a general practitioner
Nor does Japan's universal health insurance system discriminate
against psychiatric patients, Tsuyoshi Akiyama, M.D., a clinical professor of
neuropsychiatry at Tokyo University, reported. It covers psychiatric treatment
provided not just in hospitals or by private-practice psychiatrists, but in
group homes (which are developing slowly) and in community mental health
clinics (which are starting to emerge).
In fact, Japan's universal health insurance system includes special
provisions to make sure that the severely mentally ill who are also poor have
access to psychiatric care, Hiroto Ito, Ph.D., told Psychiatric News.
Ito is director of the Department of Social Psychiatry at Japan's
National Institute of Mental Health in Tokyo. Under these provisions, Ito
explained, patients who are both severely mentally ill and poor do not have to
pay any health insurance premiums, and when they receive treatment, they have
to pay only very small copays.
Furthermore, if psychiatric patients are poor, the Japanese government
provides them with cost-of-living subsidies, Fumiko Hoeft, M.D., Ph.D., said
in an interview. Hoeft is a Japanese psychiatrist now affiliated with Stanford
University in California. Indeed, "When I worked as a psychiatrist in
Japan," she said, "sometimes hospitalized psychiatric patients
wanted to treat me to lunch out of their subsidies."
However, Japan's universal health insurance system also has some
"We don't have enough time to see patients," Nagamine
"Since affordable medical care is available to everyone, the Japanese
often visit doctors," Hoeft noted. "As a result, waiting times can
be long. It is a problem not just for psychiatric patients but for all
Hoeft also pointed out, "Due to the government's policy,
psychiatric hospitals want to get patients who have been living there a long
time to move into the community, but patients are often reluctant to do so
since they then have to spend their government subsidies on an apartment,
food, and so on."
"Doctors' fees are similar regardless of how much experience
doctors have and regardless of the quality of the care they provide,"
Ito reported. "The system should focus on outcomes and processes of
Although clinical psychologists in Japan provide good psychotherapy,
Akiyama said, they are not reimbursed by the universal health insurance
system. Therefore patients who want therapy from psychologists have to pay for
it out of pocket.
But probably the biggest disadvantage—at least from the
physicians' point of view—is that the universal health insurance
system does not reimburse them well for their services. "We have to work
long hours for little payment," Nagamine said. "That is the major
thing that I don't like about Japan's universal health insurance
Akiyama concurred: "The Japanese system does not pay appropriate fees
for good-quality treatment or care. For example, a psychiatrist is paid less
than $30 for a psychiatric interview."
The low pay grates on Japanese psychiatrists even more for the reason that
some other medical specialties in Japan receive better reimbursement, Takuya
Kojima, M.D., Ph.D., reported on the homepage of the Japanese Society of
Psychiatry and Neurology in April. Kojima is chair of the society's board
The larger challenge, however, Hoeft pointed out, is that the Japanese
population is aging rapidly. As a result, health care costs in Japan are
soaring, and at the same time there are not enough young Japanese to work and
pay taxes and thus keep Japan's universal health insurance system
solvent. So the Japanese Health Ministry is looking for ways to reduce medical
costs—say, by reducing reimbursement to physicians.
The Japanese Health Ministry is also asking other members of Japanese
society besides physicians to help keep the universal health insurance system
solvent. For example, "the government reimburses psychiatric hospitals
better for patients' care if the patients remain in the hospital for a
shorter rather than a longer time," Hoeft said. "And if you go to
the hospital, you pay 30 percent of the cost yourself as copay. Ten years ago,
it used to be 10 percent."
All told, the pros and cons of the Japanese health insurance system might
help Americans decide where they want to take their own health insurance
system, especially now that health insurance reform is a hot
"Personally I believe that the United States should adopt some sort
of standardized health insurance," Akiyama proposed. "I guess your
country cannot leave the situation as is where a substantial percentage of the
population cannot receive standard-level medical care."
"Japan's universal health insurance system is very
conservative," Ito said. "That is, it makes changes very
slowly." As a result, it is able to monitor the impact of changes and to
take their impact into consideration before it makes still more changes. The
United States might want to do the same if it decides to revamp its health
insurance system, he suggested.
"If you have health insurance in the United States and go to a
hospital, you don't have to pay anything there, but later you get all
these bills, which are really complicated," Hoeft pointed out."
Sometimes you can't tell whether you are double-charged or not. It
is also confusing when a statement says, 'This is a bill' or 'This is not a
bill,' and then you double pay, and then you have to get reimbursed for the
double payment. And it is also unnerving that unpaid bills go to a debt
collector right away!
"But in Japan, you don't have to go through any of these
hassles. You pay any copay you owe when you leave the hospital, and that is
the end of it. Thus, I suggest that Americans might want to adopt this aspect
of the Japanese health insurance system." ▪