Running Head: SAT 1 – SAT TASK 3: HEALTHCARE FINANCING 1 Organizational Systems and Quality Leadership C489 – Task 3 Anthony J. Vaughan September 25, 2019 Western Governors University
SAT 1 – SAT TASK 2: HEALTHCARE FINANCING 2 A. Compare the United States Healthcare System 1. Japanese and American Comparison Comparing the United States healthcare system to other countries is complicated due to the fact that every “country has unique political, economic, and social attributes that contribute to its spending” on healthcare (Sawyer & Cox, 2018). The comparison between the healthcare systems of the United States and Japan is of great interest because of the efficiency that is seen in the economy of the country of Japan. Japan’s economy is ranked as either the second or third largest worldwide economy, depending on the year, and yet the country has very little natural resources from which to create their incredible economy (Reid, 2008). What does a country of such significant economic prowess do differently than the United, in terms of the distribution of healthcare for its citizens? The Japanese universal Statutory Health Insurance System (SHIS) is compulsory. Everyone must buy into the healthcare system through one of more than 3,400 insurers, of noncompeting public and quasi-private health insurance insurers made up of employers, and government run insurance systems (International Health Care System Profiles [IHCSP], n.d). The national government sets provider fees every two years, and subsidizes local government, insurers and medical providers with oversight supervision (IHCSP, n.d.). “People are not allowed to buy unlisted services with the budget provided, but they can purchase such services with their own money” (IHCSP, n.d.). The cost of care in Japan is one of the lowest in the world with an overnight hospital stay costing as little as $10 per day for a shared room and around $90 per day for a private room (Reid, 2008). In 2017 the per capita cost per person in Japan was $4,717 (Sawyer & Cox, 2018). The American healthcare system is no longer compulsory after some provisions of the Affordable Health Care Act were dismantled, however more than 91 percent of Americans
SAT 1 – SAT TASK 2: HEALTHCARE FINANCING 3 have health insurance coverage ( U.S. Department of Commerce, 2018 ). Beginning in 2019, purchasing health insurance is no longer mandated by a federal tax penalty ( Department of Health and Human Services [HHS], n.d - b) The fact that individuals are no longer required to pay a federal penalty for lapsing health insurance coverage means that a fewer number of individuals will have health insurance coverage in the United States (U.S.). H owever some states have their own mandates separate from federal law requiring individuals to purchase health insurance or face penalties because they end up bearing the cost of uninsured individuals when they end up on the State Medicaid roles ( HHS, n.d. - b). Medicaid, a State health insurance for the poor is available for Americans below a range of 100%-400% of the U.S. poverty level ( HHS, n.d. - b).
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