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Health Science
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Nov 24, 2024
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U.S Healthcare System versus Australia
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U.S Healthcare System versus Australia
The U.S. healthcare system is unique. The U.S. healthcare system reflects national beliefs. It's
vital to remember while understanding a country's system. Other nations judge similar concepts
differently. Comparing systems requires understanding each country's culture.
Australian healthcare differs from U.S. healthcare.
Differences
U.S. healthcare is not nationalized. U.S. healthcare has several options. Private, government,
workplace, or self-pay insurance are options. The United States healthcare system reflects the
country's emphasis on economics. Medicare, on the other hand, provides free public healthcare to
all Australian citizens and permanent residents. Medicare pays for medical treatment, including
prescription drugs, in hospitals and clinics. As a result of paying taxes and general government
funding, Australians enjoy access to free healthcare. They are still paying for it, even if it appears
free. Private insurance is also available to Australians. One of the most notable differences
between medical care in Australia and the United States is the emphasis on private versus state
insurance.
Regarding cost, healthcare cost in the U.S. is knowingly higher than in other countries. The lack
of price regulation, administrative overheads, and profit-driven healthcare systems contribute to
higher expenses. Out-of-pocket costs such as copayments, premiums, and deductibles could be
substantial. In contrast, healthcare cost in Australia is much lower than in the U.S. The
government's involvement in regulating pharmaceutical costs and fees assists in controlling
expenses. While out-of-pocket costs exist, lower safety nets are considered to protect individuals
with high healthcare needs. Also, regarding access and wait time, healthcare access in the U.S.
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could be challenging for people without insurance coverage. Wait times for non-emergency
procedures vary depending on location, insurance, and specialist availability. Emergency care is
accessible to everybody. In contrast, Australia's system provides equitable access to care. While
their waiting times for elective procedures exist, public hospitals prioritize urgent cases.
Medicare ensures citizens can access primary healthcare services irrespective of insurance
coverage or income.
Funding
Australia's public healthcare system is funded by 1.5% of salaries, rising to 2.5% for individuals
without private coverage. Companies and the private sector largely pay for U.S. healthcare. The
two nations' healthcare budgets differ greatly. According to Boslaugh (2013), in 2010, the
Australian government spent roughly $108 billion on healthcare. Coopersmith (2012) estimates
that the United States spent between $120 and $260 billion on critical care patients in 2012. The
disparity in total healthcare expenditures is staggering. Population size is important. The U.S. has
a far greater population than Australia; thus, its spending may look higher. Even after population
adjustment, the U.S. spends more. The high price of needed medications is a big factor. The sum
Australian citizens must pay out of pocket for most prescription drugs is capped. U.S.
pharmaceutical companies heavily influence pharmaceutical pricing. Many Americans utilize
private insurance, although some patients must pay out-of-pocket. Since many Americans can't
afford medical treatment, this is an issue. The Australian healthcare system has this advantage
over the American healthcare system.
Outcomes
There are still holes in the Australian healthcare system. Even though every Australian citizen is
automatically enrolled in Medicare, many opt for private coverage. Unlike Medicare, private
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insurance can assist in paying for services like dental and optical care. Private health insurance in
Australia also allows patients to visit any hospital or doctor they like. They may get to specific
medical procedures more quickly and easily because of their private insurance. “About 10% of
Australian adults had to wait more than 4 months for elective surgery” (Dixit & Sambasivan,
2018). Medicare does provide free medical care, but recipients must wait on lengthy
administrative processes. To avoid such issues, many Australians choose private healthcare. Even
though more Australians need private insurance, it's more expensive in the U.S. This is due to
several issues, but lax regulation of private insurance is a major one. Insurance firms capitalize
on this by setting prices arbitrarily high compared to the true cost of medical care. The greater
cost of services in the United States contributes to increased healthcare costs. In addition to what
is covered by insurance, services may include laboratory testing and doctor costs. However,
private insurance lets you pick your own doctors and healthcare strategy. The patient may then
decide which doctors to see and can seek out specific experts if desired. But under a publicly
funded healthcare system, you'd have to accept the government's chosen provider.
Results
Life expectancy
Compared to the United States, Australia consistently has a higher life expectancy. According to
recent statistics, Australians expectancy is an average of 83.9 years, whereas Americans can
anticipate to live for 78.8. Access to care, care quality, and socioeconomic determinants of health
are all possible explanations for this discrepancy.
Mortality rates
Overall, Australia has lower mortality rates than the U.S. This includes both overall mortality
rates and particular causes of death, including cardiovascular diseases and certain types of
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cancer. The Australian healthcare system emphasizes preventive care, public health initiatives,
and early detection.
Procedure costs
In the U.S., healthcare costs, including procedure costs, are significantly higher than in Australia.
The U.S. healthcare system operates within a predominantly private insurance-based model,
which often leads to higher prices for medical procedures, hospital stays, and medications. On
the contrary, Australia has a mixed public-private system that incorporates government subsidies
and regulation, leading to lower procedure costs.
Infant mortality rates
Australian infant mortality is lower than U.S. Australian prenatal care, competent healthcare
staff, and improved public health measures improve baby healthcare outcomes (Sarah, 2013). In
contrast, the U.S. struggles with higher infant mortality rates, partly because of disparities in
access to healthcare services, racial disparities, and socioeconomic factors.
Uninsured rates
The U.S. has higher ratio of uninsured citizens than Australia. As of 2021, around 8.8 percent of
U.S Citizens were uninsured. In Australia, the system offers universal coverage through
Medicare, ensuring that most of the population has access to healthcare services.
Citizen's medical debt
Medical debts are a significant issue in the U.S., with most people and families experiencing
hardships because of healthcare expenses. In Australia, while people may incur out-of-pocket
costs, the government subsidies and Medicare system significantly mitigate the financial burden
on citizens.
Ease of access
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Australia's healthcare system generally offers a better ease of access to care than the U.S.
Australians have the right to access healthcare services, and waiting times for elective procedures
are shorter; the U.S. system, with its reliance on private insurance, may lead to barriers to access
such as limited provider networks, high costs, and administrative complexities.
Quality of care/ wait times
Both countries have relatively high-quality healthcare systems but have different wait times for
particular procedures. While Australia has shorter wait times for elective procedures, the U.S. has
shorter wait times for specialized procedures and access to cutting-edge medical technologies
/
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References
Coopersmith, C. M., Wunsch, H., Fink, M. P., Linde-Zwirble, W. T., Olsen, K. M., Sommers, M.
S., Deutschman, C. S. (2012). A comparison of critical care research funding and the
financial burden of critical illness in the United States*. Critical Care Medicine,40(4),
1072-1079. doi:10.1097/ccm.0b013e31823c8d03
Dixit, S. K., & Sambasivan, M. (2018). A review of the Australian healthcare system: A policy
perspective.
SAGE
Open
Medicine,6,
205031211876921.
doi:10.1177/2050312118769211
Sarah E. Boslaugh. (2013). Health Care Systems Around the World: A Comparative Guide.
SAGE Publications, Inc.