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Long-term Care in Japan

Author

Listed:
  • Rong Fu
  • Toshiaki Iizuka
  • Haruko Noguchi

Abstract

Japan, renowned for its significantly aged population, presents a distinctive landscape in elderly care. Notably, there exists no apparent correlation between the economic well-being of the elderly and the limitations they experience in Activities of Daily Living (ADLs) and Instrumental Activities of Daily Living (IADLs). In response to the escalating demand for elderly care, Japan introduced the public Long-Term Care Insurance (LTCI) system in 2000. This comprehensive program offers a wide spectrum of long-term care services, aiming to facilitate aging in place for seniors and alleviate the burdens on informal caregivers. Nevertheless, the LTCI system faces substantial challenges, predominantly related to financial sustainability and a shortage of human resources. Ongoing discussions center on achieving cost-effective service delivery, potential adjustments to premium rates and copayments, especially for individuals with ample financial resources or minimal care needs. Furthermore, debates surround the reduction of the age of eligibility for LTCI, with opposition stemming from intricate financial and structural considerations. Japan grapples with a deficiency of social security contributors and skilled care workers, necessitating endeavors to enhance labor force participation and foster innovation in the long-term care sector. Japan's LTCI system offers invaluable insights for countries grappling with akin demographic and care-related predicaments.

Suggested Citation

  • Rong Fu & Toshiaki Iizuka & Haruko Noguchi, 2023. "Long-term Care in Japan," NBER Working Papers 31829, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31829
    Note: AG
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    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I19 - Health, Education, and Welfare - - Health - - - Other

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