Japan spent a record ¥49 trillion on medical expenses in FY2025

Medical expenses in Japan for fiscal 2025 rose 2.6% from the previous year to a record ¥49.2 trillion ($308 billion), reflecting the country’s aging population and advances in medical technology, according to preliminary data.

The expenses paid to medical institutions to treat diseases and injuries in the year through March 2026 increased for the fifth consecutive year, according to the data released by the health ministry Friday.

The pace of growth accelerated after slowing for three years in a row.

“The increased use of high-cost medications, such as anticancer drugs, was one contributing factor,” a ministry official said.

The data covered payments from the public health insurance system, other public expenses and out-of-pocket costs shouldered by patients. The preliminary figure accounted for roughly 98% of the total medical expenditures in the country.

Expenses for inpatient treatment climbed 2.3% to ¥19.6 trillion, while those for outpatient treatment rose 1.6% to ¥16.5 trillion. Costs to treat dental patients gained 3.5% to ¥3.5 trillion and drug-dispensing costs grew 3.9% to ¥8.8 trillion.

Per capita medical expenses amounted to ¥400,000, up 3.1%. Medical expenses for those age 75 or over averaged ¥989,000 — four times the average of ¥261,000 for those under 75.