Japan's health insurance system for private-sector employees (Kenpo) is sinking deeper into deficit. It is estimated that eight of 10 health insurance associations booked losses in fiscal 2002. At this rate, an increase in insurance premiums seems inevitable.
The protracted economic slump is partly responsible for the falling premium revenue, according to the National Federation of Health Insurance Societies, or Kenporen. The revenue shortfall is also attributed to increased contributions to the government-managed health-care programs for the elderly and retirees. But it seems there are also problems with health insurance associations themselves.
For example, the associations are said to maintain a loose accounting system and operate luxury recreation facilities. Subscribers may well wonder whether their associations are effectively serving their interests. In fact, the need for efficient and open management seems greater than ever before.