The health ministry in August told officials in charge of national health insurance at local governments that they can count on higher premiums, according to government sources.
An official of the Health, Labor and Welfare Ministry told the meeting that such increases will accompany medical system reforms slated for fiscal 2002 and cannot be avoided, the sources said.
"Other than seeking increased efficiency at medical institutions, we will have to ask that premiums be raised," the official was quoted as saying.
About 42 million people, mostly self-employed people, farmers and fishermen, are covered by national health insurance programs run by local governments.
According to health ministry data, premiums per household stood at about 153,000 yen per year on average in fiscal 1999.
About 60 percent of the insurers are in the red and have been relying on government subsidies to pay benefits.
The ministry section in charge of national health insurance programs run by local governments said the remark about raising premiums was made as a general statement and is not binding.
The ministry is considering raising the burden on the insured, who use plans similar to the cooperative plans to which most company employees belong, to 30 percent from the current 20 percent, ministry sources said.
It is also considering revising the basis for government health insurance and cooperative health insurance premiums, calculating the premiums on annual income, including bonuses, the sources said. The current system is based on monthly income.