Japan’s Health, Labor and Welfare Minister says he wants to deal with disability welfare service compensation fraud in an appropriate manner

By Barrier Free Japan, extract From NHK

May 14 2024

TOKYO – It has become clear that group homes for people with disabilities operated by Megumi Co., Ltd., headquartered in Minato-ku, Tokyo, are overcharging food costs, and the Ministry of Health, Labor and Welfare has also revealed that they are also fraudulently charging fees for welfare services for the disabled.

Among these, Aichi Prefecture will next month impose the harshest administrative penalties stipulated in the Comprehensive Support for Persons with Disabilities Act on some businesses within the prefecture for fraudulently requesting compensation for disability welfare services. We have decided to cancel the order.

Nagoya City is also considering revoking the designation of four business establishments.

According to the company’s website, Megumi operates group homes in approximately 100 locations in 12 prefectures, but after the company’s designation was revoked, it was discovered that the company’s illegal organizational involvement was recognized. If the government makes a decision, based on the provisions of the law, a so-called “joint association system” will be applied, in which all other offices of the same company will not be allowed to renew their designation, and there is a possibility that they will no longer be able to operate.

Regarding this, Minister of Health, Labor and Welfare Takemi said at a press conference after the Cabinet meeting on the 14th, “As the national government is conducting inspections, I cannot comment at this point on whether there will be a co-existence system, but there is a feeling of anxiety among people with disabilities and their families. “There are some people who are suffering from the virus, so we would like to work with prefectures, municipalities, etc. to respond appropriately.”

Megumi’s head office in Minato Ward, Tokyo, responded to NHK’s interview, saying, “…we cannot comment. If improvements are needed, we will respond wholeheartedly and thoroughly.”