Australia vs. USA Healthcare Comparison

By Jake Kjos

Intro: Comparing Healthcare

Healthcare in the United States has often been ridiculed for the large amount of money spent and the low return on investment in terms of the country’s coverage. Comparing the healthcare system of the USA with that of Australia will give an idea of the similarities and differences between healthcare across countries. These two countries can be compared and contrasted by looking at the healthcare coverage for citizens, and the amount of government spending on healthcare.

Healthcare CoverageUSA

49% of healthcare coverage comes from employers 5% individual

16% Medicaid

13% Medicare

1% Other Public

16% Uninsured

The average cost of a routine office visit in the US is $68

USA Coverage Continued

Private insurance – US citizens have the right to find their own private insurers to aid them from extreme medical costs if they were to become severely ill.

Medicaid – Covers over 65 million Americans in groups who are most needy such as: Pregnant women and infants

Those who are 138% below the Federal poverty level

Medicaid gives these low income families insurance that is as good as private insurance.

USA Coverage ctd.

Medicare – Covers people age 65 or older people under age 65 with certain disabilities, and

people of all ages with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant).

Part A of Medicare covers hospital insurance such as inpatient care Covers hospice care also

Part B covers doctor’s services and outpatient care

Prescription drug coverage usually requires a premium

USA Uninsured

How does the lack of insurance affect access to health care? The uninsured have much worse access to care and are less likely to

receive preventive care or treatment for chronic diseases

25% of uninsured adults go without necessary care due to the cost

What does lack of coverage mean financially? Uninsured in the USA are likely to go into medical debt when they

receive treatment due to high medical bills

35% of uninsured payment is out of pocket.

They also typically are charged more than the insured.

Healthcare CoverageAustralia

Australian Citizens and members with a permanent resident visa are eligible for Medicare in Australia

Medicare provides benefits for: Consultation fees for doctors and specialists

Tests and examinations by doctors needed to treat illnesses, including X-rays and pathology tests

Eye tests performed by optometrists

Most surgical and other therapeutic procedures performed by doctors

A number of surgical procedures performed by approved dentists

Coverage: Australia ctd.

Medicare patients who choose to be treated at a public hospital receive services for free. This includes care, treatment, and after-care.

Medicare pays 85% of the schedule fee for out of hospital services. The Medicare schedule fee is a scale for what specific services should

cost. Doctors and hospitals can choose to charge more than the service fee.

40% of Australian Citizens still elect for private insurance.

If a citizen chooses to be treated privately, they are able to choose their own doctor. 75% of schedule fee is covered for private patients.

What is not covered? - Australia

Medicare does not cover: Private patient hospital costs (for example, theatre fees or

accommodation) Dental examinations and treatment Ambulance services Home nursing Physiotherapy, occupational therapy, speech therapy, eye

therapy, chiropractic services, podiatry or psychology except when part of the Enhanced Primary Care (EPC) program

Acupuncture (unless part of a doctor’s consultation) Glasses and contact lenses

What is not covered – Australia ctd.

Hearing aids and other appliances

Prostheses

Medicines (except for the subsidy on medicines covered by the PBS)

Medical and hospital costs incurred overseas

Medical costs that someone else is responsible for

Medical services which are not clinically necessary

Cosmetic surgery

Examinations for life insurance, superannuation or membership of a friendly society

Many of these procedures can be covered by private insurance, accounting for the reason 40% choose to go private.

Australia Overview

http://www.youtube.com/watch?v=FzCrzZcqd5g

Government Spending - Australia

Health spending increased 74% over the past decade, compared to the GDP growing by 46%.

Costs are rising due to aging population Citizens 50 years or older are seeing doctors much more than they

were 10 years ago

Australia spent $120 billion on healthcare in 2009-10 Government contributes 44% of overall healthcare costs

Government Spending - USA

The US government spent nearly a trillion dollars on healthcare spending in the 2013 fiscal year.

The number is expected to grow even larger in the future due to aging of the population

the rise of healthcare costs per person

number of people enrolled in federal programs growing

Healthcare accounts for 26% of the Federal government’s total spending.

Government Spending Comparison

Conclusion

Comparing the two countries’ healthcare systems shows some interesting results. Australia spends about half the percentage of their GDP compared to America, and covers every citizen completely. The USA government spends a large amount on healthcare, and still 16% of the population is uninsured.

Both countries face similar problems such as the rising spending on healthcare. The two countries are seeing the aging of the population play a major part in the spending increase, and each has had to deal with the average cost per person going up.

Each country offers private insurance as well as coverage from the government, but the plans vary greatly.

Works Cited

"Congressional Budget Office." CBO. N.p., n.d. Web. 22 Nov. 2013.

"How Much Do We Spend on Health?" (AIHW). N.p., n.d. Web. 22 Nov. 2013.

"How Private Health Coverage Works: A Primer â 2008 Update « » The Henry J. Kaiser Family Foundation." ��The Henry J Kaiser Family Foundation How Private Health Coverage Works A Primer 2008Update Comments. N.p., n.d. Web. 22 Nov. 2013.

"Key Facts about the Uninsured Population « » The Henry J. Kaiser Family Foundation." Key Facts about the Uninsured Population. N.p., n.d. Web. 21 Nov. 2013.

"Medicare Program - General Information." - Centers for Medicare & Medicaid Services. N.p., n.d. Web. 22 Nov. 2013.

"The Australian Healthcare System." Working In Australia. N.p., n.d. Web. 21 Nov. 2013.

"The Health Care System and Health Policy in Australia - The Commonwealth Fund." The Health Care System and Health Policy in Australia - The Commonwealth Fund. N.p., n.d. Web. 21 Nov. 2013.

"Tough Choices: How to Rein in Australia’s Rising Health bill." The Conversation. N.p., n.d. Web. 22 Nov. 2013.

"US Federal Budget Analyst." US Health Care Budget: US Federal Budget FY12 Estimated Spending Breakdown. N.p., n.d. Web. 22 Nov. 2013