Efforts to reduce burden on Japan’s working generation still limited

While the government’s fiscal 2026 budget bill, adopted on Friday, calls for record-high spending on social security, its efforts to reduce the health insurance premium burden on the working generation are still limited.

The budget bill allocates a record ¥39.06 trillion for social security-related expenses, up ¥760 billion from fiscal 2025, reflecting a rise in medical and nursing care costs due to an aging population, as well as a sharp rise in medical fees under the public health insurance system.

For fiscal 2026, the government plans to lower drug fees by 0.87% but raise medical service fees by 3.09%, the first increase above 3% in 30 years.