Abstract: Japanese nursing insurance system was established in 2000. It is of the same nature as the national medical insurance, pension insurance and social insurance system, and has relatively matured after 18 years of development. As population aging in Japan continues to worsen, the number of elderly people in need of care continues to rise, and the expenditure on nursing insurance has been significantly increased, which brings great pressure to the national finance. How to deal with the financial difficulties faced by nursing insurance and maintain the sustainability of the system is an important issue. Japan adjusts the imbalance of the income and expenditure of nursing insurance by increasing the proportion of personal burden, adding preventive services, setting up financial stabilization fund and other ways to alleviate the financial source of nursing insurance.

Key words: Japan, nursing insurance financing, aging population, financial stabilization fund