Japan contemplates cutting health benefits for elderly

From the Malaysia Star/Bloomberg:

Japan’s government plans to reduce medical insurance coverage for someelderly citizens to curb ballooning costs that are forecast to reach asmuch as 40 trillion yen, or US$345bil, in 10 years. 

The Government said it aimed at cutting payments made under thestate-run medical insurance programme by 7.5% over the next 10 years,and by 12.5% over the next 20 years, the Health and Welfare Ministrysaid in a statement. 

The ministry’s proposal will raise payments for those between 70 and 75 years old to 20% of total medical bills from 10%. 

Those aged between 70 and 75 with higher income will pay 30%, up from20%. People between 65 and 69 will benefit under the proposal, paying20% of total medical costs from 30%. 

Government medical insurance payouts are expected to total 28.3trillion yen in the year ending March 2007, the ministry forecast. 

Under the new plan, the ministry said it aimed at cutting 3 trillionyen off medical costs in the year ending March 2016, which was 7.5%less than the current forecast.