To slow the rising cost of nursing care in this graying country, the Abe administration has decided to lower by 2.27 percent the compensation for entities operating facilities or providing services for nursing care for the elderly, starting in fiscal 2015. But because the move, which also includes a wage increase for nursing care workers, will impact the financial base of care service operators, it could weaken the foundation of the nursing care system.

The compensation — 90 percent of which is paid out of tax revenues and nursing care insurance premiums, with the remaining 10 percent covered by out-of-pocket payments by users of the services — amounted to some ¥10 trillion in fiscal 2014 and is expected to reach between ¥21 trillion and ¥22 trillion in fiscal 2025.

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