Panel 4: Public assistance and safety net for the poor
Defi nition of individuals who cannot aff ord any contribution is a prerequisite for universal
coverage by social health insurance. In Japan, people on public assistance are not enrolled in
any social health insurance plan, and are exempted from both premium contribution and
co-payment. Medical expenditures paid by public assistance contribute about 3–4% of the
total. The medical services to which people with public assistance are eligible are the same as
for social health insurance enrollees, and providers are paid at the same fee schedule rate.
Although all individuals who meet the nationally defi ned criteria should be eligible for public
assistance, in practice, the hurdle is high. Municipal governments have been reluctant to
provide coverage because they have to fund 25% of expenditure from their general
revenues—which amounted to 17% of Osaka City’s budget in 2010—and because they are
aware of the public outcry should any abuse be reported by the media. Applicants are told to
fi rst seek assistance from family members who are legally bound to help under the civil code.
However, municipal governments do not have any means of enforcing family support.
The number of people on public assistance has increased by 10% compared with 2010, to
2 million in 2011, a record high. The national government has tried to lower the proportion
they currently fund, 75%, and have pointed out the 11-times diff erence in the per-head
number of those on public assistance even between prefectures. However, the municipalities
have so far successfully resisted, arguing that because ensuring basic livelihoods is a
constitutional right, the national government should be primarily responsible, and that
prefectures that have high proportions of people on public assistance are metropolitan areas
with a higher prevalence of people without homes than in rural areas.
The livelihood allowance provided by public assistance is higher than the basic pension
amount, which has added another layer of complexity because its reform is linked to pension
reform. In health care, it is linked to the next layer of poverty: those who will be exempt from
co-payment among those enrolled in the citizens’ health insurance, which is also a decision
made by municipalities. Thus, the safety net for the poor is doubly at risk when the
municipality faces fiscal diffiulties.