New Law: No Dues, No Visa

[GomiGirl]

JAPAN TIMES, ZEIT GIST: Enrollment in Japan's health insurance program tied to visa renewal from 2010


New law: no dues, no visa

By JENNY UECHI

In your wallet or somewhere at home, do you have a blue or pink card showing that you are enrolled in one of Japan's national health and pension programs? If not, and if you are thinking of extending your stay here, you may want to think about a recent revision to visa requirements for foreign residents. The changes, which the Justice Ministry says were made in order to "smooth out the administrative process," may have major consequences for foreign residents and their future in Japan.

It's not clear why these changes are occurring now. When pressed for an explanation, a representative of the Ministry of Justice (who declined to give her name) replied that it was merely carrying out the Cabinet's three-year plan for regulatory reform.

"We're simply acting on the suggestions of the government and the Immigration Bureau," she said. "The new rule would help the bureau confirm the situation of those enrolled in social insurance, and also encourage the enrollment of those who haven't done so already."

Regardless of how people feel about the national health insurance system, the fact is that enrollment is mandatory for residents of Japan, and the new visa requirement merely draws attention to this.

Carlet finds it "bizarre" that some firms claim their foreign workers wanted to be left off the pension and insurance schemes; it's the law, he says, and employees can "opt out" of it no more than Warren Buffett can "opt out" of paying income tax.

full story....

methinks the govt are looking at the declining coffers of the nenkin scheme and wondering where they can find some extra pennies.

[Iraira]

methinks the govt are looking at the declining coffers of the nenkin scheme and wondering where they can find some extra pennies.

Of course the gov is trying to milk anything that resembles a cow (not my fault if this metaphor arouses Greji). If it forces the Eikaiwas to stop with the "28 hours ain't full time" game, and the teachers can get some real benefits out of it, then good. Way too much haken going on.

[Neo-Rio]

Well this is definitely going to kick a few of the foreign bums out of Japan.

[FG Lurker]

Too many eikaiwas have constantly found new ways to skirt the changing insurance laws. Nova was notorious for this but the other big players do the same thing, probably most of the smaller ones too. Looks like the gov't got tired of this cat and mouse game and has found a way to whip them into line...

[Taro Toporific]

Too many eikaiwas have constantly found new ways to skirt the changing insurance laws... Looks like the gov't got tired of this cat and mouse game and has found a way to whip them into line...

Sadly, the teachers as "independent contractors" scam will continue, but now such teachers will have to pay their own pension/health premiums.

Actually, this crackdown will help the eikaiwa slimeballs by getting rid of gaijin who haven't paid several years of pension/health. Most eikaiwa and Japanese students want naive, "nama gaijin."

Experienced engrish teachers faced with having to pay several years worth of unpaid pension/health premiums will wisely decide to leave Japan rather than pay the bills. Three or four years of unpaid pension/health premiums will amount to anywhere from 800,000yen to well over million.

There is going to be a lot of pain for non-paying gaijin for the next few years.

[GomiGirl]

Sadly, I wish there was an opt-out clause for people who can prove they have private health insurance and private pension schemes/mutual funds. I deliberately have avoided the national health and pension schemes as I can manage my money much better than the government can.

I will not be a drain on the system should my health or age cause me to be infirm. I already pay higher than normal ward tax as I am not on national health... but that amount is less than the cost to me of joining such an inefficient scheme.

[Iraira]

Sadly, I wish there was an opt-out clause for people who can prove they have private health insurance and private pension schemes/mutual funds.

Wanna go to Las Vegas?

[Number11]

The government isn't interested if you plan to take care of your own needs as your get older or are sick. They care about getting your money now to pay for their salaries first, then using your money to pay for some of other people's retirement and health care now.

Most of the pension outlays are unfunded anyway. The Treasury prints up bonds and gives them to the Bank of Japan and the BoJ pays for them by printing up money and giving it to the Treasury. So, it really is just bureaucrats confiscating your money for themselves.

It used to be called feudalism, but now it's called democracy.

[IkemenTommy]

Orly?

[Doctor Stop]

Sadly, I wish there was an opt-out clause for people who can prove they have private health insurance and private pension schemes/mutual funds.

Can a resident of Australia opt-out of the Australian systems?

[canman]

I have no problem belonging to the national health plan, as it was getting to be a real pain in the neck using Global Health up here. I know that in Tokyo and other big cities, hospitals are more understanding and knowledgeable about these kind of things. But up here in Aomori it really sucked. But I don't belong to the national pension system and have made arrangements for my own private pension, so I am worried that they are going to try and force me into it, even though I will never get back whatever I pay in.
To answer your question DR. Stop, in Canada people can opt out of the pension system, or at least they used to be able to, unless the gov't changed the law recently.

[TennoChinko]

Sadly, I wish there was an opt-out clause for people who can prove they have private health insurance and private pension schemes/mutual funds. I deliberately have avoided the national health and pension schemes as I can manage my money much better than the government can.

I will not be a drain on the system should my health or age cause me to be infirm. I already pay higher than normal ward tax as I am not on national health... but that amount is less than the cost to me of joining such an inefficient scheme.

I don't understand. Local residential tax is now calculated as 10% of one's taxable income -and NHI premiums are calculated as a percentage of the latter ... not the other way around.

The only thing I could think of was that there is a deduction allowed for NHI premiums that reduces your taxable income and in turn, your local tax bill. However, even that does not make sense... even if the entire NHI premium were deductible, your local tax bill might only go down by 10% of the annual premium - tops.

In fact, what one wants to do is make certain to claim every available legal deduction on their annual income tax return to reduce their taxable income to as low a number as possible. Most people who have their income tax returns processed by their employer as salaried employees making under Y20,000,000 have no idea they can actually file a second tax return separately and claim all manner of business expenses that were otherwise not reimbursed by their employer. There is some pretty good advice on this subject on http://www.gaijintax.com

If you discover that you do need to get on NHI in order to get your visa renewed next year, then you might discover the ward office informing you that you now need to pay up to two years of back premiums to enroll in the program. The good news is that in many cases, they are often willing to negotiate. However, since there will undoubted be a small rush of foreigners all needing to do the same thing - their willingness to haggle could go either way ... they could be more lenient, or realizing that they are facing someone with no other choice, they may gleefully demand their pound of flesh.

[Ketou]

So if it's just renewals then can those of us on PR go about business as usual??

[TennoChinko]

So if it's just renewals then can those of us on PR go about business as usual??

Yes.

FGs on work visas, spousal & "nikkei" visas ... most any visa that requires you to apply for an extension/renewal to Immigration is theoretically subject to this new requirement.

[Midwinter]

What I want to know is if they are forcing foreigners into the pension system, have they changed the discriminating refund policy associated with it? IIRC a foreigner can only get 30% of their total payments refunded if they leave the country after "x" number of years, while a Japanese is entitled to something like 70%.

[TennoChinko]

What I want to know is if they are forcing foreigners into the pension system, have they changed the discriminating refund policy associated with it? IIRC a foreigner can only get 30% of their total payments refunded if they leave the country after "x" number of years, while a Japanese is entitled to something like 70%.

I believe that remains unchanged. (I was not aware that Japanese were entitled to a refund or were allowed to opt out as you indicated).

However, depending on your home country, there have been quite a few who now provide reciprocal credit with Japanese pension contributions.

To be fair, back in the US of A, we have plenty of non-US citizens - working legally on work visas or with Green Cards as well as those working illegally- who have deductions for Social Security taken out of their paychecks.

Of course, unlike the situation with expats in Japan, I'd say most of those non-Americans are someday planning (or hoping) to get US citizenship.

[Midwinter]

I believe that remains unchanged. (I was not aware that Japanese were entitled to a refund or were allowed to opt out as you indicated).

However, depending on your home country, there have been quite a few who now provide reciprocal credit with Japanese pension contributions.

To be fair, back in the US of A, we have plenty of non-US citizens - working legally on work visas or with Green Cards as well as those working illegally- who have deductions for Social Security taken out of their paychecks.

Of course, unlike the situation with expats in Japan, I'd say most of those non-Americans are someday planning (or hoping) to get US citizenship.

From what I recall, a Japanese national is entitled to up to 70% refund if they leave the country and immigrate elsewhere. The actual percentage depends on the number of years said local has been enroled in the pension plan whereby for a foreigner, it caps out at 30% refund after 3 years of payments.

[Taro Toporific]

[james]

I have no problem belonging to the national health plan, as it was getting to be a real pain in the neck using Global Health up here. I know that in Tokyo and other big cities, hospitals are more understanding and knowledgeable about these kind of things. But up here in Aomori it really sucked. But I don't belong to the national pension system and have made arrangements for my own private pension, so I am worried that they are going to try and force me into it, even though I will never get back whatever I pay in.
To answer your question DR. Stop, in Canada people can opt out of the pension system, or at least they used to be able to, unless the gov't changed the law recently.

i'm in very much the same situation you. i've not paid a single yen into the national ponzi system and have been using global health for the last several years when nhi started gouging me. of course the hospitals and clinics here have no clue about it. knock on wood, i just don't get sick and haven't had to use it.

current situation in canada - as of 1998 you can no longer opt out. whether you consider 1998 'recent' or not is up to you

government run pension plans are a disingenous intergenerational transfer of wealth and the current demographics only exacerbate the frustrations of young people who are being robbed of the opportunity to better invest their own money.

canada, with its comparatively low debt to gdp ratio, growing population and (compared to japan) fairly sound economy will likely manage not to screw us over completely in the future.

one can't help but wonder though, how japan, with a debt to gdp ratio approaching 200% and climbing, a shrinking and aging populace, a perpetual leadership vaccuum and a 'government' that absolutely reeks with the vile, putrid stench of unequivocal corruption, laziness and ineptitude will ever be able to meet its pension obligations to the current generation of young workers (what few there are).

[jingai]

Not that this is relevant as I'm in the US, but I wish I had Japan's national health insurance. My US private employer-subsidized insurance is essentially useless with little choice in doctors and chronic disputes over billing and claims (I guess it's how they protect their profits). National systems can't work if the least sick like GG (or me) opt out. Sign me up!

[Ketou]

one can't help but wonder though, how japan, with a debt to gdp ratio approaching 200% and climbing, a shrinking and aging populace, a perpetual leadership vaccuum and a 'government' that absolutely reeks with the vile, putrid stench of unequivocal corruption, laziness and ineptitude will ever be able to meet its pension obligations to the current generation of young workers (what few there are).

They have no idea how to finance the future, except to have an ever expanding population. They also think that the future generation of politicians will sort it out, no incentive there.

[FG Lurker]

They also think that the future generation of politicians will sort it out, no incentive there.

The next generation of politicians will have little choice but to sort it out.

[Ketou]

The next generation of politicians will have little choice but to sort it out.

Yea, but it will/would be interesting to see how many generations can keep bumping it back to the next.

[FG Lurker]

Yea, but it will/would be interesting to see how many generations can keep bumping it back to the next.

It's being going on for quite some time already.

The crunch is getting close though. As the population here shrinks GDP will shrink too. Less tax revenue, fewer fee payers, ever increasing percentage of old farts draining the system. Fewer people/businesses to buy JGBs to cover shortfalls. They could try printing more money but that doesn't work for very long.

If they don't fix the declining population problem then the crunch will hit 20 to 30 years from now at the latest.

[GomiGirl]

Can a resident of Australia opt-out of the Australian systems?

Not for Medicare but there are benefits and incentives for supplimenting with private health insurance.

For Super, you have the choice of which provider you wish to use and have control over how the fund is managed.

[GomiGirl]

A friend emailed this today.

Free Choice Foundation

From their site:

About the Free Choice Foundation

The Free Choice Foundation is a grass-roots movement seeking an understanding with the Japanese Government concerning the needs of the foreign community of Japan.


Who we are . . .

We reside throughout Japan and include among us both short-term and long-term residents. We are also proud to include a number of Japanese supporters.


What we are . . .

Free Choice seeks to gain the understanding and cooperation of the Japanese Government and the people of Japan regarding the health-care needs of foreigners living in this society. Our goals are to compile the facts and present the issues.


Who chairs the foundation . . .

The founder and chairman of Free Choice is long-time Hyogo resident Ronald Kessler. Born in 1950 and raised in Chicago, Kessler moved to Japan in 1979. He is happily married and has two sons, both of whom are pursuing careers in Tokyo. A lifetime entrepreneur, he started his first business venture at the age of twenty-one. He enjoys nature and country settings; both his home and office are located in wooded areas with tall trees.

Kessler is an avid health advocate. He is a non-smoker and non-drinker, eats a moderate diet, and never misses a workout at the gym.

Throughout his more than 30 years as a resident of Japan, he has never been afraid to stand up for what he believes in nor to lobby with the government over issues he felt needed improvement or change. While some of his efforts have been unsuccessful (as can certainly be expected when dealing with government), others have proven to be remarkably fruitful.

I don't know any more than this and have only had a precursory look at the site. Seems to have lots of information and advice.

Anybody have more thoughts on this?

[Samurai_Jerk]

[Greji]

[Iraira]

That comes in the same category of such great retorts as: " I won't come in your mouth," "the check's in the mail" and "I bought it from a gaijin in Roppongi." If you believe that, I'll give you a good price on my beach house in Shinjuku.

If it's within eyeshot of hot and cold running hostesses, I'll never notice there ain't no beach to be seen.

[sublight]

Off topic a bit, but I was curious about something: For those of you who said you use Global, did they start really jacking up the price of your annual premiums several years back? Mine went from about $1100 to $2800 in the space of three years, and was set to go up another 50% the next year before I told them to shove it.

I have to wonder if they were just doing it to me because I'd had the audacity to actually use my insurance for a major medical procedure (or because they knew that I now had a serious medical condition and had to pay whatever they charged because I couldn't get covered anywhere else).