With regard to securing financial resources for measures to address the declining birthrate, a draft process for reforming social security expenditures was presented at the Council on Economic and Fiscal Policy meeting on May 5. The government is also considering reviewing the proportion of out-of-pocket payments for medical and nursing care expenses among the elderly by fiscal 2028.
The government has stated that it will secure the financial resources necessary to strengthen measures against the declining birthrate in the mid-3 trillion yen range annually through
the use of the predetermined budget, the reform
of expenditures for social security expenses,
and
the establishment of a "support fund system" that will be widely collected from companies and the public.
At the Council on Economic and Fiscal Policy meeting on May 5, a draft process compiled by the government's Council for the Establishment of Social Security for All Generations was presented with regard to the reform of social security expenditures.
The government will consider the ratio of out-of-pocket medical and nursing care expenses for the elderly, including reviewing the eligibility for the 3% burden of medical expenses and long-term care expenses, which is defined as "people with incomes equivalent to those of active workers."
In addition, in order to correct the unfairness of the burden of insurance premiums, the government will consider adding financial income to the calculation of insurance premiums, which are determined according to the amount of income such as salary.
In addition, in order to improve the efficiency of work at nursing care sites, the use of robots and ICT = information and communication technology, and the digitalization of medical sites to reduce the administrative burden are also included, both of which will be promoted by FY2028.
The draft process is expected to be approved by the Cabinet by the end of this year after consultations within the ruling party.
Prime Minister Kishida: "Improving Expenditure Efficiency and Productivity"
Prime Minister Kishida stated, "It is important to take a comprehensive view of the economy, public finances, and social security and to implement policies for sustainable growth in the face of a declining population.