The government is also trying to set up a separate insurance system for the aged and provide coverage for cheaper alternatives to hospitals, such as at-home treatments. Still, bureaucrats acknowledge they are years away from fully streamlining the system. Iguchi says that's fine with her. Most hospitals and doctors in private sector, but government-linked panel sets prices for services and drugs. Some insurance carriers private, some government.
Most people pay premiums from their paychecks and make co-payments when they go to doctor.
System has been praised as world's fastest in absorbing new technology, except for transplants, which are restricted. Costs will fall slightly for 1998, but forecast to rise nearly 4 percent in 1999. Hospitals also falling heavily into debt. Japan leads world in average hospital stay, at 45.5 days in 1995, according to Organization for Economic Cooperation and Development. Netherlands was distant second at 32.8.