initiation of the affordable care act are not included. “Grand-fathered plans” are not obligated to cover any preexisting medical conditions (Healthcare.gov). All residents are allowed to purchase Updated on 6/15/2018

ORGANIZATIONAL SYSTEMS TASK 3 8 health insurance through the marketplace without discrimination related to any preexisting conditions. A3. Finance Implications for Healthcare Delivery In the United States, there are many financial implications that has impacted patients. Two financial implications that have impacted patients in the US are the inability for households with insurance to afford out of pocket medical expenses in cases of emergencies and the ability for employed healthcare workers to be able to choose from a variety of company sponsored insurance plans. According to Brookings (2015), in 2013 approximately 80 percent of households with health insurance through an employer faced an average annual (family) deductible of roughly $2,500 for nonpreventive care. In the event of a large medical expense, the average household would have had to pay this deductible before plan coverage began. More than half of the members did not have enough assets to cover the higher or lower deductibles. Many times this caused a financial burden on families sometimes leading to bankruptcy. On a better financial scheme of financial implication, over 56% of employed individuals were able to select from more than one employer sponsored options (Brooking, 2015). This provision allows residents of the US to be more independent with their providers and choices. Although there is a sense of independence when selecting from insurance plans, many of the plans are complicated to understand resulting in under-coverage for those needing more coverage, and over-coverage for those with less health risk and needs. In Japan the impact on financial implication are not as negative as those in the US. Because residents in Japan are covered under the government assisted insurance plans, their finances are not especially affected. Residents of that country do not face the burden of high cost Updated on 6/15/2018

ORGANIZATIONAL SYSTEMS TASK 3 9 insurance premiums, high cost copays, high cost out of pocket expenses or high cost prescribed medications. All services including medications are at a set rate provided by the government every 2 years. When it is noted that physicians are seeing more patients or over prescribing medications, the government lowers the universal cost on those services preventing physicians from making substantial amounts of income from patient gouging. The universal health plan in Japan prevents residents from the unfortunate decision of filing for bankruptcy. This coverage that’s provided for all residents has resulted in Japan being amongst the healthiest in the world with the longest life expectancy.