Foreign workers in Japan can now extend health insurance coverage to their families back home, as part of a new initiative launched by local governments in Yamanashi Prefecture and other regions. This move is seen as a strategic effort to attract overseas workers, as Japan, South Korea, and Taiwan compete to secure foreign labor amidst rapidly declining populations.
Typically, Japan’s national health insurance program only covers foreign workers within the country. However, the new program, which initially targets workers from Vietnam, allows their families to be insured in their home country. Tokio Marine Insurance Vietnam is providing the coverage, with the foreign workers employed in Japan acting as the policyholders for their relatives. The annual premium for insuring each family member is JPY 26,000 ($173), and the coverage is designed to pay for 90% of medical costs incurred by the insured relatives.
In addition, employers who contribute at least 75% of the premiums for their foreign workers may qualify for a subsidy from the prefectural government, which will cover half of the employer’s contribution. It is important to note that this initiative is a private insurance scheme and does not involve Japan’s public health insurance program.
Despite the potential benefits, the initiative has faced significant opposition from local residents. Nevertheless, local governments are standing firm on the plan, arguing that the use of public funds for insurance premiums will support local businesses struggling to maintain operations amid the country’s shrinking workforce.
As of the end of 2024, Japan’s Immigration Services Agency reported that approximately 3.77 million foreigners were living in the country, marking a 10.5% increase from 2023. A survey by Asahi Shimbun in October 2024 revealed that Japan’s 47 prefectures, including Tokyo, and 20 ordinance-designated cities with populations of over 500,000, are increasingly concerned about the impact of depopulation on their economies. Many regions are anxious about the country’s policies on blue-collar foreign workers.
Japan’s current technical intern training system, introduced in 1993, restricts foreign workers from changing jobs during their stay in Japan. This system is set to be replaced by a new regulation in 2027, which will allow workers to switch jobs after completing a certain duration in the country.
If current trends continue, experts predict that by 2050, foreigners could account for 10% of Japan’s population, accompanied by a sharp decline in the number of Japanese residents.
Related topic:
Travel Insurance Coverage Gaps Impact Hong Kong’s Seniors and Children, Study Reveals
BDIC Appoints 3Point0 Labs as Agency of Record Ahead of 2025 Launch
Ignyte Insurance Launches Global Specialty Platform to Accelerate Growth
