Key Facts
• Japan’s Liberal Democratic Party (LDP) and Japan Innovation Party agreed to revise patient costs for OTC-like drugs.
• OTC-like drugs refer to medications with similar effects to over-the-counter drugs.
• Agreement includes 77 active ingredients and approximately 1,100 products, such as allergy medications and pain relief patches.
• Patients will pay a special fee covering 25% of the drug price while maintaining insurance coverage.
• Children and patients with rare diseases are exempt from the additional costs.
• The policy aims to reduce healthcare expenses by approximately $12.6 billion (¥1,880 billion).
• The revision is part of efforts to alleviate social insurance burdens on working-age individuals.
• LDP Policy Research Council Chairperson Kobayashi emphasized balancing patient contributions with reducing generational burdens.
Summary
Japan’s Liberal Democratic Party and Japan Innovation Party have reached an agreement to revise patient costs for OTC-like drugs, which are medications with effects similar to over-the-counter drugs. The policy targets 77 active ingredients and around 1,100 products, requiring patients to pay 25% of the drug price as a special fee while maintaining insurance coverage. Exemptions will apply to children and patients with rare diseases. This initiative is expected to save approximately $12.6 billion in healthcare expenses and reduce the social insurance burden on working-age individuals. The agreement reflects a balance between easing generational financial pressures and ensuring patient contributions.
