A Finance Ministry panel urged the government Thursday to make elderly people with higher incomes pay more for medical treatment as part of efforts to improve fiscal discipline amid Japan's rapidly graying society.

"In pursuit of restoring fiscal health, the biggest challenge is the field of social security," said a set of recommendations handed to Finance Minister Taro Aso by the advisory panel, calling for "equal shouldering of burdens based on their capacity."

The panel urged the government to "swiftly" revise the system of reimbursing high medical expenses to appropriately reflect the income levels of patients, as there are currently uniform payment caps for people aged 70 or older.