The government decided on a medical system reform plan on Tuesday to shift the responsibility for operating the national health insurance program from municipal to prefectural governments in fiscal 2018.

The plan was approved at the day’s meeting of the government’s social security reform headquarters, which the policy chiefs of the ruling Liberal Democratic Party and its coalition partner Komeito attended. Based on the plan, the government will submit related legislation during the next ordinary Diet session to begin on Jan. 26.

One measure in the plan aims to expand premium pools for the heath insurance program to include those who do not join public health insurance plans run by employers. The measure is designed to help reverse the deterioration of the financial state of the program.

Costs of operating the national health insurance program weigh heavily on municipalities since they have more low-income earners and retired elderly people as members than corporate health insurance programs do.

Under the reform plan, the government will start boosting financial support for the national health insurance program in fiscal 2015, which starts in April, to help the transition.

Other key features of the medical system reform plan include the removal of the current special discounts on health insurance premiums for people aged 75 and older.