Provision of National Health Insurance “Model Benefits” to Japan’s Prefectures
Regional areas, in which land rents are relatively low, clearly possess a comparative advantage in the provision of elderly services. Nevertheless, regional municipalities do not welcome influxes of elderly residents, because such influxes disadvantage regional municipal governments by requiring them to shoulder a considerable financial burden for social security while providing virtually no increase in local tax revenues.
Influxes of elderly residents would be stimulated if the national government paid an amount corresponding to a “model benefit” for each insurance subscriber, based on the average per person benefit for that age cohort throughout the entire country.
The present chapter estimates that the model benefit would be 125,000 yen for each additional resident younger than 65, and 556,000 yen for each additional resident older than 65.
KeywordsEfficient allocation of resources Inflow of elderly residents Model benefits National Health Insurance Reallocation of the number of hospital beds Social insurance for the elderly
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