July 7, 1999

Kiyoshi SASAMORI
General Secretary
Japanese Trade Union Confederation (JTUC-RENGO)

While the health insurance associations are in financial difficulties, the Confederation of Japanese Health Insurance Associations has decided to postpone the payment of contribution for the health insurance for the aged that originally should be paid within July 1999. Following the decision, about 96% of its affiliated associations accept the delayed payment by 10 days, which will not be required arrears. Rengo supports this decision aimed at asking the people for understanding and putting pressure on the Government for the institutional reform of the health insurance scheme.

In September 1997, the increase in premium and patient share of medical expenses went ahead of the fundamental reform of the medical and health insurance systems scheduled to be implemented in the fiscal year of 2000. After that, relevant councils have had a number of meetings to elaborate the reform proposals made by the then ruling parties, namely the LDP, the JSDP and Sakigake. The proposals were made to reform four areas: doctor's fee, standard prices for medicines, medial services for the aged and the provision of medical services. The implementation of the fundamental reforms in 2000 is a public commitment of the government and also the wish of the Japanese people. However, due to firm resistance of the Japan Medical Association and some LDP members sympathizing with it, the reforms were thrown into confusion. It seems that there is no hope to submit a bill to the current session of the Diet. Rengo is burning with anger about such situation.

The deficit of the health insurance has been on the increase because of the increase in medical expenses for the aged. According to the FY 1999 budget, the contribution exceeds 40% of the total income of the health insurance for the aged and 85% of health insurance associations are going into the red with the deficit of 400 billion yen. The State-run health insurance is foreseen to have 300 billion-yen. It should be said that the health insurance system is about to collapse.

Reform in the system is a serious challenge that should be given the highest priority in order to respond properly to the aging society with fewer children and to ensure that all the people are entitled to medical services of good quality. If the reform is further postponed, additional measures, such as the reduction of doctor's bills, should be taken. Rengo will continue its activities to request for the fundamental reform in the fiscal year of 2000.