Japan Healthcare Review - Q1 2021The Japanese government is confronting a more-challenging-than-expected COVID-19 outbreak in the Tokyo metropolitan area. The government’s fiscal agenda, incorporated in both the third supplementary budget for FY 2020 and the FY 2021 budget, demonstrates a continued focus on confronting the COVID-19 crisis through strengthening financial support for private healthcare institutions and local municipal governments while driving rapid COVID-19 vaccinations through the first half of 2021. Still, the Suga administration remains committed to driving down healthcare and social security costs, with budgeting for the MHLW and social security seeing minimal spending increases in FY 2021. The government will rely heavily on annual repricing of pharmaceuticals to contain spending increases.
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