The House of Representatives approved on Tuesday health insurance system reform bills featuring the establishment of a mechanism to increase out-of-pocket expenses for patients prescribed drugs with ingredients and effects similar to those of over-the-counter drugs.

The bills were passed by a majority vote at a plenary meeting of the lower chamber of parliament, with support from the ruling the Liberal Democratic Party and coalition partner the Japan Innovation Party as well as opposition parties including the Centrist Reform Alliance and the Democratic Party for the People.

They will then be discussed by the House of Councilors, the upper chamber, and are likely to be enacted during the current parliamentary session.

Under the new system, designed to reduce the country¡¯s medical costs and health insurance premium payments by working generations, 25% of the prices of OTC-like drugs will be added to patients¡¯ out-of-pocket costs as a special fee from March 2027.

The health ministry will not require patients with cancer and intractable diseases to make the additional payment. Specifics about the exemption will be worked out by a relevant panel of experts after the enactment of the bills.

About 1,100 drugs with 77 ingredients, including moisturizers and hayfever drugs, are expected to be subject to the additional burden.

In response to concerns that people may avoid visiting doctors after the introduction of the extra cost, the health, labor and welfare committee of the Lower House has adopted an additional resolution stipulating that the government ¡°will examine the impact of the new system after the launch and review it as needed.¡±

The bills also call for childbearing costs to be fully covered by health insurance as a measure to shore up the country¡¯s low birth rate, and for the strengthening of the system to reflect financial income, such as stock dividends, in health insurance premium and out-of-pocket payments by people age 75 or over.