On the Possibility of Full-funded Social Health Insurance

Abstract

Health insurance system in Japan will soon face the financial crisis because of the growing number the elderly people who expend nearly half of total health care expenditures. In this paper, I investigated the possibility of full-funded social health insurance system which is not based on individual account, but requires the solidarity among the same generations. What I have inquired was (1) future prediction of health expenditures for each generation, (2) prediction of health insurance premiums for each generation, and (3) transitional problems from the present system to proposed full-funded system.