Deepen the Dialogue

Mar 25

Ensuring the future of health and retirement in Japan

In this unprecedented global crisis, we are coming together to achieve one shared goal: to beat Covid-19. Throughout the past year, frontline healthcare workers have played a critical role in providing care, despite the risk of infection. Leaders in government have placed priority on protecting the health of the people, and the biopharmaceutical and medical technology sectors have come together to develop safe and effective new diagnostics, therapies, and vaccines at a pace we have never seen before. It is truly a moment when we are seeing the value of our continued investment in scientific innovation.

This pandemic also offers Japan a unique opportunity to rethink its current healthcare and retirement system. With the aging of the population accelerating, Japan’s human and material resources for healthcare and retirement are already stretched. We now find the healthcare system at the edge of a dangerous precipice and must take this opportunity to reflect on what the pandemic has taught us. Japan must rethink how to deliver on its healthcare and retirement commitments as it barrels toward an unprecedented graying of society.

Health and Retirement

When the leadership of the American Chamber of Commerce in Japan (ACCJ) decided to streamline and hone the strategic pillars of the organization, three groups that, on the surface, did not appear to have much in common found an innovative and out-of-the-box partnership that could offer meaningful solutions to some of the biggest challenges.

“Japan must rethink how to deliver on its healthcare and retirement commitments."

The healthcare, financial services, and tech sectors joined forces to explore and develop innovative recommendations for how Japan can build a more sustainable health and retirement system. As a result, the Healthcare and Retirement Pillar has been one of the strongest over the past few years, delivering impressive outputs.

The committee understood early on that the ACCJ could not simply develop another white paper on its own, however well intentioned. Engagement with Japanese thought leaders and academics would be a key success factor to igniting the sparks for meaningful discussion and change. Working closely with the Institute for New Era Strategy (INES), a well-respected Japanese think tank, leaders in the ACCJ contributed to a final white paper with detailed recommendations across three key themes:

Active utilization of data technology
Shifting financial resources toward healthcare and retirement needs
Raising the health and financial literacy of society

Moving into 2021, the ACCJ has positioned itself to deepen the discussion across these three major themes. Our member companies are now deep diving into the topics to develop specific and actionable recommendations to share with our stakeholders. Specific case studies are being put forward to provide quick wins and meaningful change—the foundation for broader reform.

The board of governors and ACCJ leadership are committed to ensuring that the broadest possible coalition of related companies has the opportunity to provide insight, expertise, recommendations, and input.

The Healthcare and Retirement Pillar, proudly one of the most active groups within the chamber, always welcomes member companies to participate in this groundbreaking work. Ultimately, the ability for Japan to manage this crisis of aging impacts us all, as residents of Japan and as a place where we do business.

Focus on Pharma

An immediate challenge facing the biopharmaceutical industry is understanding how to better communicate to the government—and the broader public—the value of the innovation we bring to society. Despite pharmaceutical expenditure in Japan being flat to declining, over the past several years, the Cabinet Office has embarked on a mission of “reducing people’s burdens” through measures that continue to reduce and erode the prices of pharmaceuticals. A frightening fact is that more than 80 percent of targeted social security system savings over the past five years have been generated through drug price cuts alone, despite pharmaceutical expenditure representing only around 20 percent of total healthcare spend. This could have dramatic repercussions for the Japanese economy, future research, and development investment in new pharmaceuticals, as well as continued early access to innovative medicines.

At a time when innovation is more important than ever to address healthcare challenges, policy is running counter to the needs of the people. It is the hope of the innovative pharmaceutical industry to partner with the Japanese government in areas such as patient education and prevention, while taking a broader view in framing the value of innovation in supporting a healthy Japan.