Osaka Councilors Face Unanimous Call to Resign Over Health Insurance Evasion Scheme

The Osaka City Council unanimously passed a resolution on the 27th recommending the resignation of former Osaka Innovation Party members, councilors Masatoshi Matsuda and Riho Satake. The resolution was adopted due to their alleged involvement in "Kokuhō Nogare," a scheme to avoid paying high National Health Insurance premiums. This issue concerns an illegal act where the two councilors are said to have unduly evaded National Health Insurance premiums by taking on roles as corporate executives.

Following the resolution's adoption, Councilor Matsuda stated, "I have no intention of resigning," indicating his resolve to remain in his position. Councilor Satake, on the other hand, did not respond to media inquiries, avoiding any specific comments regarding her future. While both councilors have already been expelled from or left the Osaka Innovation Party, they currently retain their seats on the city council.

In response to this situation, numerous criticisms have emerged on social media. On X (formerly Twitter), many opinions such as "A deserved resignation recommendation," "Their character is questionable," and "They should have resigned themselves before being advised" were seen, demonstrating strong public anger over the perceived lack of ethics among public officials. Furthermore, there were successive calls for accountability from the Japan Innovation Party and its leader, with comments like "Don't tolerate Ishin's NHI evasion" and "Hold Hirofumi Yoshimura accountable."

Although a resolution recommending resignation does not carry legal enforceability, the weight of its unanimous adoption by the council is significant, severely questioning the councilors' qualifications and moral standing. Citizens are increasingly demanding swift and responsible action, expressing concerns that such a situation undermines trust in parliamentary democracy.

The context

In Japan, the National Health Insurance (Kokumin Kenko Hoken or Kokuhō) is a mandatory public health insurance system for individuals who are not covered by employee health insurance (such as company employees or government workers). This typically includes self-employed individuals, freelancers, and retirees. Premiums for National Health Insurance are calculated based on income, assets, and the number of dependents, and can be quite high, especially for those with higher incomes. "Kokuhō Nogare" (国保逃れ), or National Health Insurance evasion, refers to schemes where individuals attempt to reduce or avoid these premiums by misrepresenting their employment status or income.

In this specific case, councilors Matsuda and Satake are accused of taking on executive positions in corporations not for legitimate business purposes but primarily to switch from the high-premium National Health Insurance to a potentially lower-premium employees' health insurance scheme, thus avoiding their due contributions to the Kokuhō system. This is considered an unethical and potentially illegal "scheme to evade premiums."

The "resolution recommending resignation" (Jishoku Kankoku Ketsugi) passed by the Osaka City Council is a strong political and moral censure. While it lacks legal binding force—meaning the councilors are not legally compelled to resign—its unanimous adoption by the entire council signifies a complete loss of confidence from their peers and the public. Such resolutions are rare and carry significant weight in the Japanese political landscape, often leading to intense public pressure for the targeted individuals to step down. The Osaka Innovation Party (Osaka Ishin no Kai) is a regional political party with significant influence in Osaka, affiliated with the national Japan Innovation Party (Nippon Ishin no Kai), led by Hirofumi Yoshimura. The public criticism extends to the party itself, demanding accountability from its leadership for the actions of its former members.