The ministries merged in 2001, making Sakaguchi the first individual to hold the combined position of Minister of Health, Labour and Welfare.

As Health and Welfare Minister, Sakaguchi delivered an apology to Hansen's disease patients who were subjected to forced sterilization under the former Japanese eugenics protection law.

He later advocated in the Diet for compensating the victims of these practices, and described them as "an egregious violation of human rights.

[4] He also dealt with record unemployment rates, and oversaw the implementation of reforms to the employment insurance and pension system.

[5] Sakaguchi retired from the House of Representatives prior to the 2012 general election due to a party rule that forbade support for candidates over the age of 66.