Japan’s welfare ministry has begun considering a plan to raise nursing care insurance premiums for high-income earners age 65 or older from fiscal 2027. The proposal was submitted to a subcommittee of the Social Security Council, which advises the welfare minister, on Friday. The review comes as higher public pension payments burden low-income earners with higher nursing care insurance premiums.
Premiums for those age 65 or older are calculated by multiplying a base figure set by local governments and by a rate determined by their incomes. In fiscal 2024 to fiscal 2026, the nationwide average of the base figure stood at ¥6,225 per month. There are 13 rates, ranging from 0.285 to 2.4, with lower rates applying to people with lower incomes.
Increases in pension payments, reflecting inflation, are causing low-income earners to qualify for higher rates, resulting in higher premiums. Under the latest proposal, the ministry plans to raise the highest rate, applied to people with annual incomes of ¥7.2 million or more. It also plans to divide lower-income brackets into smaller categories to curb sharp increases in premiums when people move into a higher rate bracket.
The subcommittee is expected to discuss the plans and reach a decision by the end of the year.
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