Drug spending prompts dire warnings for Japanese health system

Figures showing a steep rise in the amount of public money spent on prescription drugs in Japan have led to warnings that increasing prices could soon drain state resources entirely.

Japan’s Health, Labor and Welfare Ministry announced this week that medical expenses paid to hospitals and clinics were estimated to have reached a record 41.46 trillion yen ($410 billion) in the 2015 financial year. This is up by 1.5 trillion yen, or 3.8%, from the previous year.

Prescription drugs make up 7.9 trillion yen of this, which is a rise of 680 billion, or 9.4%, from the previous year. Particularly eye-catching is the rise in price of antivirals, which cost the state 414 billion yen, a 250% increase compared to 2014.