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Japan weighs flat-rate pay for home care in depopulated areas

The health ministry is drafting tiered flat monthly fees for visiting care workers in sparsely populated regions, aiming to steady providers whose income now depends on how many visits actually happen.

By Newsroom1 min read

The health ministry has begun coordinating a plan to pay home care providers in depopulated areas a flat monthly fee, with several payment tiers set by care-need level and how often a service is used, people familiar with the matter said on the 5th.

Visiting care is now paid per visit, with fees set by the number of visits and the time each one takes. That leaves providers exposed when appointments are canceled, the ministry's concern being that income becomes unstable.

The ministry will settle the actual fee levels later and reflect them in the revision of long-term care fees for fiscal 2027, which begins in April 2027.

Law cleared in June

A legal exception allowing the flat-rate system was written into the revised Long-Term Care Insurance Act that passed in June. Providers in the covered areas will be able to choose between the flat monthly fee and the existing per-visit payment.

The areas covered are those designated under the Mountain Village Revitalization Act, which targets low population density, and places where fewer than five people aged 75 or older live per square kilometer.