Japan’s Ministry of Health, Labor and Welfare Informs Local Governments of Prohibition on ‘Paid Referrals’ of Disability Welfare Services

From Kyodo News via Yahoo! Japan

March 17 2025

TOKYO – By March 17th, the Ministry of Health, Labor and Welfare had thoroughly informed local governments that it is prohibited for disability welfare service facilities and businesses to pay money or goods to referral companies in return for introducing users to them, as this is a violation of the operating standards.

It was originally prohibited to pay referral fees to consultation support specialists who create service usage plans and other disability welfare businesses, but the treatment of the general public and referral companies was unclear, so this was clarified. This was shown at an online meeting for local government section chiefs in charge.

Regarding the referral of disability welfare users, a company called “Japan Welfare Corporation” (Tokyo) is recruiting affiliated companies to operate a referral business as a franchise. Since the public remuneration (benefit) paid to disability welfare businesses increases the more severe the user’s disability, the referral fee was set according to the degree of disability. The target amount was 200,000 yen per person for the mildest cases and 350,000 yen for the most severe cases.

However, because welfare for the disabled is almost entirely covered by public funds, there is a risk that this will result in tax money being used for unintended purposes, leading to a decline in services.