Chikara Sakaguchi, minister of health, labor and welfare, on Wednesday formally proposed that doctor consultation fees and the cost of prescription drugs should be reduced by an average of 1.3 percent.

Sakaguchi also proposed that the new fee schedule be introduced on April 1.

Health ministry officials said Sakaguchi submitted the proposal Wednesday morning to the Central Social Insurance Medical Council, which is expected to endorse the move.

According to a government estimate, the proposed cuts should save some 400 billion yen in overall medical fees over fiscal 2002.

The impact of the savings for individual patients, however, is expected to be modest in the majority of cases.

Under the health ministry's proposals, for example, a flu-stricken patient who has health insurance coverage would save around 4 yen over two clinic visits.

The patient would pay 20 percent of the medical bill, which would be reduced from about 5,040 yen to 5,020 yen.

Even for more expensive medical procedures, such as treatment of a heart attack, which could involve 25 days of hospital care and incur a medical bill of 2,234,160 yen, the payment shouldered by the health insurance policy holder would be 82,762 yen, a saving of just 313 yen.

The 20 percent cost burden shouldered by salaried policy holders is expected to increase to 30 percent in fiscal 2003 under the latest health insurance plan unveiled by the government.

The reduced fee schedules proposed by Sakaguchi cover only selective medical fees such as medical tests, consultation fees for second and subsequent visits at small clinics, prescription fees, and the cost of prescription drugs and injections.

The health ministry proposal would, however, simultaneously increase the medical fees for hospital stays of six months or more by patients with health insurance coverage by between 40,000 yen and 50,000 yen a month.

The proposal also allows for an increase in consultation and other fees charged for emergency treatment of children and mental patients.