In an attempt to improve the quality of
elderly care, provide additional funding, and
eliminate efficiencies that have resulted from
the intermixing of medical treatment and longterm
care functions, the government
implemented a long-term care insurance
system in 2000. This system collects obligatory
insurance contributions from a broad sector of
the population (all persons aged 40 or older)
and provides such services as home visits by
home helpers, visits to care centers, and
long-term stays in nursing homes for older
persons suffering from senile dementia or
confined to bed for health reasons. In each
individual case, the need for such services
has to be certified by city, town, and
village offices in charge of administering
the nursing care insurance system. Insurance
contributions from persons aged 65 and over
(“Type 1 insured persons”) are collected by
the local administrations in the form of
deductions from these persons’ pensions,
while contributions from “Type 2 insured
persons” between the ages of 40 and 64 are
collected together with health insurance
contributions as a lump sum. Beneficiaries of
the system must be at least 40 years old and
must pay, in addition to the regular insurance
contributions, 10% of the cost of services
received. Japan’s nursing care insurance
system is financed by: the national
government (25%), prefectural and local
governments (12.5% each), and insurance
contributions (50%)