Healthcare Systems-USA vs Australia

This article compares the healthcare systems of USA and Australia, highlighting the key differences and similarities. It discusses the advantages and disadvantages of each system, including funding sources and accessibility for people from low socioeconomic areas. The article also addresses the disparities in healthcare outcomes for certain populations.

HEALTHCARE SYSTEMS-USA VS AUSTRALIA
Name of Student
Institution Affiliation

HEALTHCARE SYSTEMS-USA VS AUSTRALIA
Various countries have established health systems to meet the specific healthcare needs
of targeted populations. A healthcare system is, therefore, an organization of institutions, people
and resources to meet the needs of different populations. In most cases, the targeted populations
are people of low economic status and the elderly. According to WHO rankings, the USA and
Australian healthcare systems are among the top 50 in the world (WHO, 2019). There are
differences between the Australian and American healthcare systems.
The key differences between the two countries
Notably, the healthcare systems of the two countries are quite different. The Australian
healthcare system is supported by Medibank, a national health insurer with a membership of over
3.8 million people. The universal health insurance system was implemented in 1984 to provide
medical treatment in public hospitals and subsidize community care through the provision of
clinical investigations and medical consultations. Besides, the majority of metropolitan areas
representing over 40 percent of the population hold private health insurance. However, users of
private health insurance have the choice of using a shorter wait period for healthcare procedures.
In addition, they also have the option of choosing their doctor or using a private hospital for
procedures (Jones, Seoane, Deichmann & Kantrow, 2011). Additionally, the country has a
universal healthcare system known as Medicare which funds primary healthcare for permanent
residents and citizens (Harris, 2012).
On the other hand, American healthcare is composed of a wide range of healthcare
systems varying from different states. The country is majorly supported by Medicare and
Medicaid programs established by the government in 1965. The two programs were developed to
provide healthcare to citizens of age 65 and people of lower incomes. The expansion of Medicaid

to more low-income families was facilitated with the introduction of Obama care in 2010 (Jones,
Seoane, Deichmann & Kantrow, 2011). Unlike Australia, America is considered as the only rich
country without a universal healthcare system.
Advantages and disadvantages between the two countries
The healthcare systems of the two countries have both advantages and disadvantages.
One key advantage of the Australian healthcare system is that it covers all citizens and
permanent residents irrespective of their ability to pay. In addition, the country has a national
pharmaceutical benefits scheme to encourage people to buy drugs. The system is however
disadvantageous in that it lacks equity. Despite its advancement, the outcomes for Torres Strait
Islander people are deplorable (Duckett, 2017).
The American health care system, on the other hand, does not burden taxpayers with
funding of medical insurance for every person in the country. In addition, the country's medical
research system is one of the best in the world largely because of the current free market system.
This has enabled researchers to make major advances in medicine. On the negative side, the
American healthcare system is the most expensive in the world. This is worsened by the fact that
Americans are not healthier than other countries spending much less. Another key disadvantage
of the system is the fact that the majority of Americans are either uninsured or underinsured.
According to 2003 statistics, only 60% of Americans were insured by their employer, 26% by
government-based health insurance and 15% uninsured (Christ, 2017).
How each is funded (Government or private health insurance
Australian healthcare has complex funding made up of contributions from individual's pockets,
health insurance companies, state and federal government coffers. Government funding is done
through the Medicare scheme. Likewise, the American healthcare system is funded through

government programs such as Medicaid and Medicare, individual's funds and private health
insurance plans provided by employers (Jones, Seoane, Deichmann, & Kantrow,2011).
How people from low socioeconomic areas benefit/ or do not benefit from the current
health care system and do they have access to the health care system?
In the United States, the healthcare needs of people from the low socioeconomic classes
are catered for through the Medicaid programs. Medicaid has an enrollment rate of 70 million
people, representing one out of every five people. This means therefore that, people from low
socioeconomic areas benefit significantly from the program (Leonard, 2015). On the other hand,
the subsidization of healthcare in Australia makes it accessible to people from all economic
backgrounds. However, indigenous Australians are disadvantaged mainly by the current
healthcare system with their life expectancy being about a decade shorter than the non-
indigenous Australians. The most disadvantaged population not able to get healthcare due to cost
barriers is about 27% (Duckett, 2017).

References
Christ, S. (2017). Advantages & Disadvantages of American Health Care. Retrieved from
https://pocketsense.com/advantages-disadvantages-of-american-health-care-12271358.html
Duckett, S. (2017). Australia’s health system is enviable, but there's room for improvement. Retrieved
from https://theconversation.com/australias-health-system-is-enviable-but-theres-room-for-
improvement-81332
Harris, M. F. (2012). Who gets the care in Medicare?. Medical Journal of Australia, 197(11-12), 598-
599.
Jones, P. D., Seoane, L., Deichmann, R., & Kantrow, C. (2011). Differences and similarities in the
practice of medicine between Australia and the United States of America: challenges and
opportunities for The University of Queensland and the Ochsner Clinical School. Ochsner
Journal, 11(3), 253-258.
Leonard, K. (2015). Medicaid Enrollment Surges Across the U.S. Retrieved from
https://www.usnews.com/news/articles/2015/02/24/medicaid-enrollment-surges-across-the-us
WHO. (2019). WHO | World Health Organization Assesses the World's Health Systems. Retrieved from
https://www.who.int/whr/2000/media_centre/press_release/en/