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What Is The Difference Between Australia And Japan's Health Care System

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Australia uses a two-tier system for their healthcare funding model. In this system, the government provides minimum insurance coverage for all citizens while a secondary tier allows people to purchase additional insurance or fee-for-service care as the need arises (Ng, 2017). In contrast to Japan, Japan uses the Bismarck funding model for their healthcare system. The Bismarck model uses an insurance system that finances healthcare from premiums paid by employers and employees through payroll deductions and other sources of income to provide universal healthcare (Ng, 2017). One point of difference between both countries’ healthcare system is the employer’s contribution towards employee’s healthcare. In Japan, employer plays an important part in funding employee’s healthcare whereas for Australia, employer plays a minimal/no role in financing employee’s healthcare. According to Japan’s Ministry of Health, Labour and Welfare, 2017, there are 3 main categories for their participation plan. Category 1 are made of …show more content…

People under the employee’s pension includes one under 70 years old employed by a company (salaried workers or officer ladies, etc., in private sector). In employee’s pension, the premium would be 18.3% of their monthly salary which is shared equally by employees and employer. People under the Mutual aid pension includes public officials, teachers and employees at private schools. In Mutual aid pension, the premium would be 12.230% - 15.154% of their monthly income depending on the mutual aid plan they participates in. It is also shared equally by employees and employer. Category 2 makes up majority of Japan’s population and since employers are required to pay at least half of their employee’s premium, this shows that employer in Japan plays a big role in funding their employee’s healthcare and the healthcare system of

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The Beveridge Model: in this system, direct income tax deductions are used to pay for healthcare. All health services must be paid for up front by the government with funds obtained from tax deductions. The Beveridge and Bismarck models are incorporated into the National Health Insurance Model in order to balance the supply of public and private health care. In this system, the government serves as the sole payer for all medical expenses, and money is raised through a government-run insurance program that each citizen contributes to. Health care is made available at no cost at the time of service thanks to income tax funding.

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