Japan spent a record ¥49 trillion on medical expenses in FY2025
The amount, which is 2.6% higher year on year, reflects the country's aging population and advances in medical technology, according to the health ministry.
Japan's medical expenses for the fiscal year ending in March 2026 reached a record ¥49.2 trillion ($308 billion), marking a 2.6% increase from the previous year, according to preliminary figures from the health ministry. This surge in healthcare spending reflects the country's aging population and the increasing adoption of advanced medical technologies. The growth in medical costs has accelerated after three years of stagnation.
The rise in expenditures was driven in part by the growing use of high-cost medications, including anti-cancer drugs. The data, which accounts for roughly 98% of the total medical expenses in the country, covered payments made by the public health insurance system, other public expenses, and out-of-pocket costs borne by patients.
Inpatient treatment costs rose 2.3% to ¥19.6 trillion, while outpatient treatment expenses increased by 1.6% to ¥16.5 trillion. Costs related to dental care grew by 3.5% to ¥3.5 trillion, and drug-dispensing costs climbed 3.9% to ¥8.8 trillion. On average, each person in Japan incurred medical expenses totaling ¥400,000, representing a 3.1% increase from the previous year.
The financial burden of healthcare was particularly high for individuals aged 75 or older, who spent an average of ¥989,000 on medical expenses. This is more than four times the average of ¥261,000 spent by those under 75 years old.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
