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Association of the 2018 Japanese Financial Incentive Policy With Long-Term Care Needs and Mortality
Daisuke Kato1,2,3,4, Ichiro Kawachi1, Tami Saito5
1Department of Social and Behavioral Sciences, Harvard T. H. Chan School of Public Health, Boston, MA, USA.
Asia-Pacific Journal of Public Health
|December 24, 2025
Summary
Japan's 2018 financial incentive program for long-term care (LTC) showed positive results. Higher municipal incentive scores were linked to reduced long-term care needs and mortality in older adults.
Area of Science:
- Gerontology
- Public Health Policy
- Health Services Research
Background:
- Japan introduced a municipal financial incentive program in 2018 to enhance long-term care (LTC) quality.
- Understanding the impact of such policies on older populations is crucial for public health.
- Previous research has not fully quantified the association between municipal incentive performance and health outcomes.
Purpose of the Study:
- To evaluate the association between municipal financial incentive program performance and subsequent long-term care (LTC) certification and all-cause mortality.
- To analyze these associations among community-dwelling older adults in Japan.
Main Methods:
- Utilized baseline data (2016) from the Japan Gerontological Evaluation Study (N=90,896, aged ≥65).
- Linked participant data with 2018-2020 administrative records for LTC certification and mortality.
- Employed multivariable logistic regression with fixed effects, adjusting for demographic, socioeconomic, and health factors, to calculate odds ratios (ORs) per 1 standard deviation (SD) increase in composite incentive scores.
Main Results:
- Over three years, 10.7% experienced incident LTC certification and 5.1% died.
- A 1 SD higher municipal incentive score was associated with significantly lower odds of incident LTC (OR: 0.91, 95% CI [0.90, 0.92]).
- A 1 SD higher incentive score was also linked to substantially lower odds of all-cause mortality (OR: 0.66, 95% CI [0.54, 0.81]).
Conclusions:
- Improved municipal performance in Japan's financial incentive policy correlated with short-term decreases in LTC utilization and mortality.
- The "Support Functional Independence/Prevent Progression" domain was key in less-urban areas, while cities focused on process-oriented activities.
- Findings support continued policy monitoring and refinement to optimize long-term care for older residents.
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