Sanseito held an emergency press conference and announced disciplinary measures against ten party members, including local lawmakers and party officials, over their involvement in a controversial practice widely referred to in Japan as “escaping the national health insurance system.”
The case involves eight city council members from six prefectures, including Ibaraki and Saitama. According to the party, the lawmakers should have been enrolled in Japan’s National Health Insurance program for self-employed individuals, which generally requires relatively high monthly premiums.
Instead, they allegedly took nominal executive positions at companies with little or no actual business activity and switched to lower-cost employee social insurance plans. By setting extremely low executive compensation, they were reportedly able to dramatically reduce their monthly insurance payments.
The practice has drawn criticism as a loophole-based strategy designed to avoid paying the full amount expected under the national insurance system.
During the press conference, Sohei Kamiya apologized publicly, stating that the use of “a loophole-style method without real operational substance” was “highly inappropriate” for party-affiliated lawmakers and members. He also acknowledged responsibility on behalf of the party leadership.
According to the party’s internal investigation, the lawmakers reduced their insurance expenses by approximately ¥20,000 to ¥40,000 per month compared to standard National Health Insurance payments. The earliest known case reportedly began in September 2023, while some arrangements continued until June 2025.
In addition to the eight lawmakers, disciplinary action was also taken against one party official accused of introducing the scheme and a city council member from Minoh, Osaka, bringing the total number of sanctioned individuals to ten. Punishments included expulsion and recommendations to leave the party.
Sanseito stated that it began its internal investigation after similar cases surfaced within Nippon Ishin no Kai earlier this year. The party said it launched a broader review around March 2025 and subsequently discovered comparable conduct among its own members.
Kamiya added that whether the involved lawmakers resign from office would be left to each individual’s personal decision.
One of the disciplined lawmakers, Suguru Nito, told reporters that he did not recognize the practice as illegal. “I reflect deeply on my careless actions,” he said, while adding that he currently has no intention of resigning and plans to continue his council duties in an effort to regain public trust.
As part of its measures to prevent a recurrence, Sanseito announced that it will begin checking the insurance enrollment status of elected members and require all future insurance-related changes to be reported to the party.