Private Medical Insurance for Expats Living in Japan

It is an accepted fact that Japanese people are generally very healthy, both physically and psychologically, as any other nation and remain healthy well into old age. It is these qualities that give the Japanese one of the best health care systems in the world as judged by very low infant mortality rates and record longevity, which is around 78 years for men and 86 years for women.

It is very difficult to imagine any woman in Japan not attending prenatal classes or being late for a routine cervical smear. High screening attendance is reflected in their high survival statistics which reflects well for the country in the international league tables. This is being achieved at a relatively low cost as their latest official figures put Japan’s health expenditure at 8.1% of GDP. At the time of the tsunami, this was projected to rise to 9% but this still left the country with a below average proportionate spend, when measured against the other wealthy OECD member states.

Compared to British NHS patients, Japanese patients are able to choose where they want their treatment to take place as well as which doctor they want to be seen by. With Japan being a country that loves technology, it is deeply ingrained in their minds that using technology widely within the healthcare system helps enormously.

Average hospitalisation times for routine procedures

Even though Japan’s model is very efficient and their health outcomes generally being excellent, there are a few drawbacks to their system. For example, if cataract surgery and hernia repair are needed in Japan, it can involve up to three night stay in hospital whereas, in Britain, this can be carried out as a day patient.

One of the many good private hospitals in Japan is St Luke’s Hospital, which claims to have one of the quickest average case turn-rounds in the country, yet stays can often average out at around nine days.

Diet is key to good health

The Japanese health care system is more than likely to be not as good as their health outcome suggests, even though most people would see their health care system being at the top, or near the top, of the international charts. Diet is very important in Japan and with smoking now declining and obesity being less of a problem, health continues to improve. Lifestyle factors are generally better in Japan than other countries and Japan’s fish-rich and low-fat diet is in keeping the nation healthy, as is their general attitude to life.

Medication costs

Hospital stays are sometimes very time-consuming but nevertheless, operation costs have decreased when compared with private UK hospitals.

Japan’s healthcare system

Health care is publicly funded but privately provided. Due to this, everyone joins the state insurance scheme, which covers most of the cost of their health care. Citizens are highly advised to enrol into the system, although some reports show that the authorities are not overzealous in encouraging this with regards to foreign nationals. Enrolling is usually done through the employer, who will pay higher contributions than the employee.

How is Healthcare Funded?

The Japanese health care system is a cross between the US approach, where employers buy cover for employees and their dependants, and the UK’s centrally funded NHS. They also include a section from the French style co-pay, where the patient pays 30%. This co-pay rate increased from 10% in just a few years, as Japan’s economy struggled for growth and the effects of an ageing population and increasing population pressure on health care.

Enrolling in the system entails the expat paying pay tax, which varies depending on the employer. The employer will then deduct a monthly contribution from the employee’s pay packet, which will be forwarded, along with the company’s contribution, to the social insurance agency. As the proportion contributed by the company and the employee varies, it is can be perceived and used a perk, if you are working for a company which accepts a large part of the overall contribution.

The strict immigration controls in Japan means that it is largely free from non-contributing people seeking free health care, which is a serious problem in other countries such as the UK. It is therefore advised that foreign nationals, staying in Japan for under a year, should ensure they buy international private medical insurance or appropriate travel insurance to cover them although this is not compulsory. Those who are staying for longer than a year should enrol into the state system which can be done immediately on arrival and may prove to be cheaper than buying private insurance.