The government may raise the age at which people can receive elderly medical care to 75 from 70 within five years, according to health ministry sources.

It may also increase individual care payments for those aged 75 and older to 20 percent from 10 percent in accordance with income levels, the sources said.

These proposals are included in a government draft plan to reform the medical system during fiscal 2002.

The draft was compiled by the Ministry of Health, Labor and Welfare.

Seventy percent of the elderly's medical costs are met primarily by contributions from the workforce -- a scenario that also applies to bedridden people aged 65 or older. But with the health insurance system facing severe financial difficulties, the government is aiming to reduce the number of people who qualify for elderly medical care under this system.

According to the draft, individual payment levels for medical care received by those aged between 70 and 74 will be kept at the current 20 percent.

The draft also features a proposal to raise the health insurance system premium for employees of small and medium-size companies.

It also includes a plan to raise individual payment levels for medical care by salaried workers to 30 percent from the current 20 percent and to base the premium calculation method on annual income, including bonuses, instead of the current monthly income. The latter would come into force in fiscal 2003, according to the draft.

The upper limit of the premium rate for insurance managed by health insurance societies for employees of large corporations should be lowered, the draft says. This rate currently stands at 9.5 percent of monthly income.

Although the premiums are split evenly between employees and management, the government also allocates a state subsidy for the premium on bonuses, which is paid by employees.

The draft also recommends that the government lower its medical costs burden for children under 3 to 20 percent from the current 30 percent.

The government will devise a framework based on the plans by late September and release it to the public.

It aims to pass related bills in the regular Diet session that starts early next year.

Late spending spree

One in three elderly people nationwide plan to use their assets to enjoy their retirement years rather than bequeath them to their children and grandchildren, according to a recent report compiled by the Cabinet Office.

Some 65.5 percent of elderly people who responded to a February survey said they will leave their assets to their children and grandchildren, while 32.2 percent said they will use them for their own enjoyment.

Of respondents aged between 60 and 64, 41.1 percent said they will use the assets to enjoy their retirement years.

When asked about their housing arrangements or plans, 46.8 percent of respondents -- including those already living with their children -- said they want to live with their children in the future, while 17.9 percent expressed a desire to live independently.

Around 70 percent said they expect to receive financial support from their children.

Almost half of those surveyed said they venture out nearly every day, while 8.3 percent said they hardly go out at all.

Of those who said they go out regularly, 76.4 percent said they go shopping, 40.9 percent said they make hospital visits and 34.8 percent said they go for walks.

One in three said they drive themselves when they venture out, while one in five respondents in their late 70s said they are able to drive.

The survey questionnaires were given to 3,000 men and women aged over 60, and 74.2 percent of them responded.