It is estimated the national health expenditure in 2025 may be about two times the current level, or a yearly increase of 2.8% in a Japan facing the rapid aging of society. We are concerned it may be very difficult for Japan to manage to maintain expensive health expenditures. Furthermore, the younger generation cannot afford such high levels of support for the elderly, and the present health system cannot be kept up in the near future. The three representative players that have performed in the history of Japanese health policy are bureaucrats with too many regulations, weak insurers and politically strong suppliers. We propose that health resources should be allocated by the market mechanism and not by regulations.
