International Healthcare Models: Japan

Here is my earlier review of the Japanese healthcare system.  Additional information on medical care in Japan is below.

Funding

  • The system is largely funded through payroll taxes.  Employees pay a larger share of the payroll tax than employers.    
  • Insurance is bought from public sector sources.
  • There is no private sector insurance companies.
  • Co-pays are generally 30%.

Insurance

  • Government managed plans cover 30% of workers.
  • Society plans cover 25% of workers.
  • Mutual Aid Association Insurers cover government employees and teachers.
  • There are separate insurance plans for certain groups of workers (e.g., day laborers, seamen).

Physicians

  • Physicians generally work on a fee-for-service basis.  Physicians with positions in a hospital, however, are on salary.
  • Physicians can sell prescriptions directly to patients.  Unsurprisingly, Japan has the highest consumption rate of pharmaceuticals per capita in the world.
  • There is no private sector practice.
  • There are no GPs.  All physicians are specialized, (except for physicians in rural areas)
  • Physicians do not emphasize prevention (e.g., periodic physical exams are not encouraged).  The government is the institution that takes the lead in providing preventive education.
  • Students move immediately to their internship following 6 years of college with no medical school in between.
  • Physician ratio: 1:500.

Malpractice

  • The Japanese Medical Association provides malpractice insurance for 45% of Japanese physicians.
  • Few claims are filed (less than 1 per 100 physicians).  Because of this, malpractice insurance is only about $500/year

Hospitals:

  • There are no community health centers, only clinics offering specialized services.
  • Patients entering a hospital have been required to find a sponsor who will agree to pay for the services delivered when the patient cannot.
  • When patients seek treatment in a hospital, they are expected to pay part of the bill in advance, with their insurance reimbursing them later.

Regulation:

  • All fees for all procedures are set by a government-organized panel including insurers, providers and citizens.

Source: Roth, WF (2010) Comprehensive Healthcare for the U.S.: An Idealized Model. Productivity Press, 174 pages.

Tags: ,

  1. Mike Cohen’s avatar

    Very interesting.

    Japan is often mentioned as a good model in terms of quality of care, access to care, overall mortality/life expectancy and cost.

    Which attributes of their health care model do you believe are most influential in their relative success?

    Mike

Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>