This paper first discusses the past patterns of the national medical care expenditure and its future path. About 30 percent of the past growth was due to population aging and the remaining 70 percent was due to technological change. The medical expenditure is expected to increase by about 20 percent in 20 years due to population aging. The latter half of the paper focuses on a reform plan of the health insurance for the elderly and presents some policy recommendations. One of the most serious problems in the health care market is that virtually no agents evaluate the quality of medical services or help improve it. It has not been clarified whether the rising medical costs are the result of waste or of necessity. Reform should attempt to make insurers play a more active role in the health care market as informed agents of patients. Dramatic outsourcing of the health insurance business to the private sector should be promoted.
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Paper provided by Graduate School of Economics, Hitotsubashi University in its series Discussion Papers with number
2002-14.
Length: 12 p. Date of creation: Jan 2003 Date of revision: Handle: RePEc:hit:econdp:2002-14
Note: Forthcoming in Toshiaki Tachibanaki ed., Sosical Security in Japan, Edward Elger. An earlier version of this paper was presented at the Second International Forum of the Collaboration Projects held in Tokyo on March 18-20, 2001. Contact details of provider: Phone: +81-42-580-8000 Web page: http://www.econ.hit-u.ac.jp/ More information through EDIRC
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Find related papers by JEL classification: I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health