In this paper, we comprehensively consider health insurance in Japan through analyzing "Japanese mixed treatment" which permits a mixture of free treatment with publicly insured treatment, from the viewpoint of efficiency and fairness. While socioeconomic environments have varied in Japan, it has been pointed out that the prohibition rule for mixed treatment is harmful. At this current stage of introducing mixed treatment, the health security system in Japan is required to have viewpoints about patients' needs and efficient allocation of health resources. Fairness must be secured to be consistent with these viewpoints. So, we examine the efficiency and fairness of the prohibition rule for mixed treatment through surplus analysis. Then we find that this rule has problems with not only efficiency but fairness. Next, looking more deeply at the concept of fairness, we take up Ronald Dworkin's theory of justice as a new notion of fairness, while giving consideration to the viewpoints stated above. In the process of reconsidering present conditions in line with Dworkin's theory, we can get many useful suggestions for the healthcare system in Japan in addition to mixed treatment, for example, the whole limiting concept of the coverage of public health insurance and the separation of roles between public sector and private sector.
In conclusion, we propose the following new healthcare system by introducing mixed insurance. It is vital that we change the conventional policy which covers all medical demands by only public health insurance and permit mixed treatment more flexibly for needs that public health insurance can't cover, having a clear distinction between the role of public sector and private sector. Then, each individual could cover for the cost by himself through private health insurance.
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