TOKYO (AFX-ASIA) - Prime Minister Junichiro Koizumi said the government intends to cut susbidies on medical services by putting a cap on the funds made available. "Now, the government is considering introducing a new formula under which it will cap the amount of funds available for medical subsidies for each medical proceedure," Koizumi said. "In addition, we are considering creating a separate medical insurance system for the elderly, aged 60 or over, to reduce the burden of medical provision," he said. The prime minister gave no precise figures.