Healthcare Systems in the USA and Australia

Health care system is the organization of resources for the provision of health care to a target population. The organization is with respect to people together with institutions and resources that are used in health care provision. Its provision varies depending on governments with some countries having health care system provided by the government while others have such provisions in the private sector. This paper seeks to discuss health care systems in the United States and Australia. The paper will look into advantages and disadvantages in the two systems and the budget allocation in each system.

Advantages and disadvantages of the United States health system

Health care system in the United States is funded by both the federal government and private insurers. Subscriptions to insurance covers are undertaken by individuals or through employers. Such insurance covers are paid for in terms of premiums with individuals required to at times make some payments for medical services. The system has a number of advantages that are associated with it. Its first advantage if the availability of many insurance providers, including the government, that makes the insurance market competitive hence quality services. The fact that individuals have the option to choose from the variety of insurance covers and insurance companies also fuels the need for quality of services among companies as well as allowing citizens to have their power of choice over their health coverage. The health reform act that was enacted in the year 2010 also added to the advantages of the American health care system by providing that every citizen has the duty to obtain a health insurance cover. This has the effect of reducing the number of people in the country who failed to invest in medical insurance and as a result does not seek medical attention due to the high costs that are normally involved. The American system also offers subsidies to financially unstable individuals thus allowing them to obtain cover. Though the system seems to be attractive with the federal government alone spending two trillion dollars in health care, the system is still characterized with a lot disadvantages. One of the disadvantages of the American health care system is the cost which is recognized to be too expensive. People who do not have insurance covers or those who are no fully covered may then fail to meet medical costs. It has also been in the past characterized with a high number of uninsured people (BBC, 2010, 1). The system is also characterized by tedious bureaucracies with treatment regulations for different patients (Cutler, 2008, 2). The American expenditure on health care is about sixteen percent of its GDP (BBC, 2010, 1).

Advantages and disadvantages of the Australian health system

The Australian health care system also has the competitive advantage from its many health care providers. A high level of government funding and control has also ensured effectiveness and quality in the provision of health care. The government funds the care from its tax that supports the poor. The sector is also regulated by government policies (Australian, 2010, 1). The system has however failed to make adequate provisions as well s protection to people in rural areas who are taken advantage of by private insurers (Green, 2008, 1). The government spends about seventeen percent of the country’s budget on health care (Macrohistory, 2010, 1).


Australian. (2010) The Australian health system. Web.

BBC. (2010) Q &A: US health care reform. Web.

Cutler, D. (2008) The American health care system. Web.

Green, T. (2008) Health system disadvantages rural areas. Web.

Macrohistory. (2010) Australia: wealth and national well being. Web.

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