Everybody needs health insurance, especially when they live and work abroad. However, insurance systems in foreign countries are often difficult to understand without native language proficiency and difficult to explain to foreign employees whose reference points are often the completely different schemes they are used to in their home countries.

Here for both employees and employers, HR Club introduces a guide to health insurance options available to foreign workers resident in Japan.

Social Insurance (Shakai Hoken)

・Not everyone is eligible to join.

・Application is made via employer.

・Monthly premiums are salary linked and deducted directly from employee’s paycheck.

・Employers pay an equal contribution each month.

・Must also join the Employees’ Pension Insurance scheme.

・Members of this scheme pay 30% of their medical costs, covering sickness, injury and necessary dental work.

National Health Insurance (Kokumin Kenko Hoken)

・All foreign residents with a valid visa, allowing them to stay in Japan for a year or more, can join.

・The scheme is open to people who are not employed (expectant mothers, students, retirees, etc.)

・Premiums are calculated on a yearly basis (April – March) based on the insured person’s resident tax, property owned and number of dependents.

・Premiums can be paid by bank transfer or at the local ward or city office.

・Primary members and their dependents pay 30% for inpatient or outpatient costs.

Private Health Insurance

・Private health insurance in Japan is open to all nationalities and their dependents, regardless of their visa status and employment contract.

・Social and National Health Insurance premiums are based on salary; private health insurance premiums are age-related and operate in a series of age brackets.

・Premiums are usually paid by credit card, bank check or bank transfer.

・The amount of deductible (the cost of treatment the insured individual must pay) can be tailored to the insured person’s needs.

・Plans cover in-patient and outpatient treatment as well as dental treatment.

・Coverage is not limited only to Japan.

Points to Consider

・One of the advantages of using private insurance in Japan is that many English-speaking medical practitioners do not accept national health.

・The law currently states that foreigners living in Japan for more than one year must have health insurance; each city office is left to interpret this independently and while some accept private insurance as an adequate means of health insurance, others might not.

・Private health insurance typically covers not only medical treatment in Japan but provides worldwide coverage, which is really important for frequent travelers.

To find out more about the Japanese insurance system, please visit your local city office.

For private health insurance, GlobalHealth.jp helps provide you with great insurance coverage both within Japan and abroad. Please check www.globalhealth.jp for details.