What are 'OTC-like drugs' in Japan?

OTC-like drugs are prescription medications covered by public insurance that have similar ingredients and effects to over-the-counter products.

Why is Japan adding extra charges for these prescription drugs?

The charges aim to ensure fairness with over-the-counter drug purchases and reduce the insurance premium burden on the working population.

When will the new extra charges for Japanese prescription drugs start?

The additional fees are scheduled to begin in March 2027.

Home / Business and Economy / Japan to Add Extra Costs to Common Rx Drugs

Japan to Add Extra Costs to Common Rx Drugs

12 Jan

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Summary

77 ingredients in prescription drugs will incur extra patient costs.
Measure aims for fairness and to reduce insurance burden.
Additional fees start March 2027; some groups exempt.

Japan to Add Extra Costs to Common Rx Drugs

Starting March 2027, Japan plans to implement additional patient charges on around 1,100 prescription medications that contain 77 specific ingredients. These "OTC-like drugs" are similar in composition and effect to over-the-counter products but have been covered by public health insurance. The Ministry of Health, Labor and Welfare announced this proposal to ensure fairness for individuals purchasing over-the-counter medicines and to lessen the financial strain on the working population through insurance premiums.

The new system will require patients to pay an additional "special fee" of 25% of the drug cost, on top of their usual 10% to 30% copayment, with public insurance covering the remaining 75%. This change is expected to increase costs for patients with a 30% copayment to approximately 1.6 times their current expense. The ministry estimates this measure will reduce national medical expenses by about 90 billion yen annually.