Health Insurance Act

The insurers providing insurance (excluding insurance for specially-insured day laborers) are Japan Health Insurance Association and health insurance societies.

Of the services relating to health insurance businesses provided by Japan Health Insurance Association pursuant to the provisions of the preceding paragraph, the confirmation of acquisition and loss of eligibility to be insured, determination of standard monthly remuneration and standard bonus amount, collection of insurance premiums (excluding those from insured persons with optional and continued coverage), and operations incidental to these are conducted by the Minister of Health, Labour and Welfare.

A health insurance society administers insurance of the insured persons who are its members.

Persons who administers insurance for insured persons who are employed at two or more places of business at the same time are specified by Order of the Ministry of Health, Labour and Welfare, notwithstanding the provisions of Article 5, paragraph (1) and the preceding Article.

In order to provide health insurance services to insured persons who are not members of a health insurance society (hereinafter simply referred to as "insured persons"), Japan Health Insurance Association (hereinafter referred to as "JHIA") is established.

JHIA provides the services listed below:

operations related to insurance benefits pursuant to the provisions of Chapter IV and insurance benefits pertaining to specially-insured day laborers pursuant to the provisions of Chapter V, Section 3;

operations related to healthcare services and welfare services pursuant to the provisions of Chapter VI;

beyond the services listed in the preceding two items, services related to a health insurance business administered by JHIA and other than services provided by the Minister of Health, Labour and Welfare pursuant to the provisions of Article 5, paragraph (2);

beyond the services listed in items (i) and (ii), services related to insurance for specially-insured day laborers that are not administered by the Minister of Health, Labour and Welfare pursuant to the provisions of Article 123, paragraph (2);

operations related to affairs pertaining to the authority prescribed in Article 204-7, paragraph (1); and

operations incidental to the operations listed in each of the preceding items.

When conducting the operations listed in paragraph (2), item (ii) of the preceding Article (limited to those related to healthcare services pursuant to the provisions of Chapter VI; referred to as "health services operations" in Article 7-29-2), JHIA must conduct them appropriately and effectively, taking into consideration the age, sex, state of health, and other circumstances of insured persons and their dependents.

JHIA is a corporation.

JHIA establishes a principal office in Tokyo and secondary offices (hereinafter referred to as "branches") in each prefecture.

JHIA's address is the location of its principal office.

The stated capital of JHIA is the amount contributed by the government pursuant to the provisions of Article 18, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Health Insurance Act, etc. (Act No. 83 of 2006; hereinafter referred to as "Amending Act").

JHIA must specify the particulars listed below in its articles of incorporation:

its purpose;

its name;

the locations of its offices;

particulars relating to its officers;

particulars relating to its management board;

particulars relating to its council;

particulars relating to healthcare services;

particulars relating to welfare services;

particulars relating to asset management and other finances; and

other important matters related to organization and operations as specified by Order of the Ministry of Health, Labour and Welfare.

No alternation to the articles of incorporation referred to in the preceding paragraph (except those pertaining to matters specified by Order of the Ministry of Health, Labour and Welfare) is effected without authorization by the Minister of Health, Labour and Welfare.

When JHIA makes any amendment to the articles of incorporation with regard to matters specified by Order of the Ministry of Health, Labour and Welfare referred to in the preceding paragraph, it must notify the Minister of Health, Labour and Welfare of the amendment without delay.

When JHIA is authorized for an amendment to the articles of incorporation referred to in paragraph (2) or makes any amendment to the articles of incorporation with regard to matters specified by Order of the Ministry of Health, Labour and Welfare referred to in the same paragraph, it must give publicly notice of the amendment without delay.

JHIA must complete its registration as specified by Cabinet Order.

The matters that must be registered pursuant to the provisions of the preceding paragraph cannot be asserted against a third party until after they are registered.

No person other than JHIA may use the name "Japan Health Insurance Association".

JHIA has one president, not more than six directors, and two auditors as its officers.

The president of JHIA represents JHIA and executes its operations.

If the president is incapacitated or the position of president is vacant, another director appointed by the president in advance represents the president or performs the president's duties.

The directors may assist the president in executing the operations of JHIA as determined by the president.

An auditor audits the execution of business and the financial status of JHIA.

The president and auditors are appointed by the Minister of Health, Labour and Welfare.

The Minister of Health, Labour and Welfare, when intending to appoint the president pursuant to the provisions of the preceding paragraph, must hear the opinions of the Management Board in advance as provided for by Article 7-18, paragraph (1).

The directors are appointed by the president.

When the president appoints a director pursuant to the provisions of the preceding paragraph, the president must notify the Minister of Health, Labour and Welfare of the appointment and publicize it without delay.

The term of office for an officer is three years; however, the term for a substitute officer is the remaining term of the predecessor.

An officer may be reappointed.

A government official or an official of a local public entity (excluding a part-time official) is ineligible to be an officer.

When an officer appointed by the Minister of Health, Labour and Welfare or the president becomes a person who is ineligible to be an officer pursuant to the provisions of the preceding Article, the Minister of Health, Labour and Welfare or the president, respectively, must dismiss the officer.

If an officer appointed by the Minister of Health, Labour and Welfare or the president falls under any of the following items or is otherwise found to be unfit to serve as an officer, the minister or the president, respectively, may dismiss the officer:

the officer is incapable of performing official duties due to physical or mental disability; or

the officer committed a violation of obligation in the course of duties.

If the president dismisses a director pursuant to the provisions of the preceding paragraph, the president must notify the Minister of Health, Labour and Welfare of the dismissal and publicize it without delay.

An officer (excluding a part-time officer) must not serve as an officer of an organization for profit or engage in a business for profit independently; however, this does not apply if the officer obtains approval from the Minister of Health, Labour and Welfare.

Regarding any matter in which the president or the director has a conflict of interest with the JHIA, the president or the director have no authority of representation. In this case, an auditor represents JHIA.

The president may appoint an agent from among the directors or employees and authorize the agent to conduct all judicial or extra-judicial acts concerning a part of the operations of JHIA.

In order to reflect opinions of employers (meaning employers of an applicable place of business at which insured persons are employed; the same applies hereinafter in this section) and insured persons, and to ensure that JHIA's operations are appropriate, JHIA has a management board.

The management board has nine or less members who are appointed by the Minister of Health, Labor and Welfare from among employers, insured persons, and persons with relevant knowledge and experience for properly operating JHIA.

The term of the members in the preceding paragraph is two years.

The proviso to Article 7-12, paragraph (1) and the provisions of paragraph (2) of the same Article apply mutatis mutandis to members of the management board.

With regard to the particulars listed below, the president must obtain a resolution at the management board in advance:

amendments to the articles of incorporation;

changes to the operation rules referred to in Article 7-22, paragraph (2);

JHIA's business plan as well as budget and settlement in each fiscal year;

disposition of important property or burden of significant debt;

changes to the standards for payment of remuneration and retirement allowance for officers prescribed in Article 7-35, paragraph (2); and

other important matters related to the organization and operations of JHIA as specified by Order of the Ministry of Health, Labour and Welfare.

Beyond the matters prescribed in the preceding paragraph, the management board may consult with the president and make proposals to the president when it finds it necessary.

Beyond the matters covered by the preceding two paragraphs, other matters relating to the organization and operation of the management board are specified by Order of the Ministry of Health, Labour and Welfare.

A member of the management board is deemed to be an official engaged in public service under acts and regulations, with respect to the application of the Penal Code (Act No. 45 of 1907) and other penal provisions.