Collection methods and premium amounts differ according to the category of insured persons.

Category 1 insured persons (persons aged 65 or over)

Premiums for category 1 insured persons are collected by municipalities. Municipalities collect premiums by deducting premiums from the pensions of those whose total monthly pension income is 15,000 yen or higher. Premiums are collected by municipalities by individually billing each person whose total monthly pension income is less than 15,000 yen.

Premium amounts are determined by multiplying the base amount established by municipal ordinance by an income-based rate. The insured person is responsible for paying the entire amount him or herself. The base amount is based on long-term care insurance program plans established by each municipality. These plans are revised every three years.

Category 2 insured persons (persons aged between 40 and 64)

Premiums for category 2 insured persons are determined by multiplying the standard monthly remuneration amount and standard bonus amount by the premium rate. The premium rate is calculated by dividing the long-term care insurance benefits (paid by the Health Insurance Societies) by the total standard remuneration amount (including estimated total standard bonus amount) for insured persons. In principle, category 2 insured persons and their employers split the bill equally. (Voluntarily and continuously insured persons must pay premiums entirely on their own).
As with general insurance premiums of health insurance, long-term care insurance premiums are deducted from salaries on a monthly basis. Deductions include premiums for dependents aged between 40 and 64. These people are not required to pay premiums on their own.