Final Blog Post

"What makes people in Japan and Germany healthier?"

This is the question that guided me through my project. Is it universal coverage? Better medical technology? The ability to share important health data? Or is it simply a difference in lifestyles? 

I measured health by average life expectancy. Japanese are the healthiest, with an average life expectancy of 82.7 years. Germans live 80.3 years on average and Americans rank 42nd in life expectancy, with an average of 78.8 years of age. The United States is ranked number one in medical research and technology, yet our citizens have poorer health than many other developed countries around the world. To find out why, I analyzed the healthcare systems in the United States, Japan, and Germany. 

The United States healthcare system is very fragmented, with many different payers paying select groups of providers. The International Common Wealth Fund (linked in the title) broke down each type of insurance plan offered in the United States. Medicare, which insures 16% of our population, pays for those that are sixty-five and older and for people with select disabilities. Medicaid pays for low-income populations and insures nearly 20% of United States citizens. Employer-sponsored insurance programs cover 55.4% of the population. Private insurance, which is sold through health insurance marketplaces, insures 14.6% of the population and military health insurance covers 4.5% of the population. The United States is unique in that there are 33 million people, or 10% of the population, that are uninsured. We are also unique because our healthcare cost more than every other country in the world. The image above shows the average cost of a hip replacement in the United States compared to the cost of the same surgery in Japan and Germany. The graph below shows our healthcare costs per capita compared to other countries' systems.

Even though we spend more and cover fewer people, there are some positive aspects of the U.S. healthcare system, too. The Affordable Care Act (ACA), passed in 2010, drastically changed the lives of millions of previously uninsured people. Medicaid was expanded in many states, premiums were offered to more low-income individuals, and everyone became required to pay a fine if they chose not to purchase insurance. As a result, 17.6 million previously uninsured Americans acquired coverage.

The United States is also ranked #1 in most advanced in medical technology. Our county has benefited from the latest medical innovations, which have contributed to lower death and disability rates. We also have every other country beat for the number of research papers published each year. The graph to the left shows just how far ahead the U.S. is in collaborative and non-collaborative research publications. This trend has been sustained because the U.S. heavily invests in research and development, which leads to medical advancements.

Despite our advancements and our high spending, we rank 42nd in life expectancy. Consumers are also dissatisfied with their care. 52% of Americans report not being able to get same or next-day appointments (only worse than Canada). Our doctors are ranked 9th in well-prepared to manage complex needs and we are ranked last in the ability to see a doctor after business hours, not taking emergency departments into consideration. The United States healthcare system has a long way to go if it wants to compete on a global scale.

Japan 
Japan's healthcare system is one of the least expensive and has some of the best health outcomes. Everyone in Japan is required to have a health insurance policy, either through their employer or a private insurer. Payroll taxes allow the government to give subsidies or pay for those that are too poor to afford coverage on their own.  Healthcare costs in Japan are so low because the government heavily negotiates prices with hospitals, 80% of which are privately owned. Hospitals are also not-for-profit entities, which helps keep prices down. There are complaints from medical professionals because of low pay, but patients and payers praise the inexpensive system. 

Many accredit Japanese' long lives to their healthier lifestyles. Japanese children are taught to live healthy lifestyles at very young ages. According to Today, over 98% of children walk or bike to school. They are also taught to eat healthier, consume fewer calories per bite, and practice life-long habits of regular exercise. Shockingly, Japanese citizens also visit the doctor three times as much as Americans. 

In my summary section of my report, I tried to answer whether Japan's health success was a result of lifestyle, healthcare system, or both. 

Germany
German's healthcare system also ensures that all citizens have coverage and access to medical care. Citizens and permanent visitors can get their insurance through "sickness funds", which are competing, not-for-profit, nongovernmental health insurance funds. "Sickness funds" are comprised of two main types of insurance funds: statutory health insurance (SHI) and substitutive private health insurance (PHI). All employed individuals earning less than 54,900 euros are mandatorily covered by SHI, and their dependents are covered free of charge. Others can receive coverage by purchasing a private health insurance plan. States own most of the hospitals and they are regulated by self-governing associations. It is mandatory for all Germans to have insurance.

Although many may consider German diet to be unhealthy, there are health promoters that may contribute to Germany's longer life expectancy. Germans benefit from fresh, whole foods and incredibly clean air that promote active lifestyles. They also practice life-long habits of exercise and tend to enjoy outdoor sports. Despite stereotypically unhealthy diets, Germans are more than two times less likely to be obese than Americans. These habits may contribute to their longer lives. 



Health technology is also advanced in Germany. 90% of German physicians use EHRs, compared to only 83% of American physicians using them in the United States. Germany is also one of the first countries to use a health card. All 71 million legal customers of health insurance in Germany receive a health smart card. These cards contain medical, policy, insurance, and contact information and link to a patient's medical record, making it easy for providers to look up a patient's health data. 

Summary and Overview
The overarching question I wanted to answer was "why are Germans and Japanese citizens healthier than Americans?" 

Is it a result of insurance coverage? There is 100% health insurance coverage in Germany and Japan, while only 90.9% of the American population is covered. What does not having insurance do? According to Keith Joiner, professor in the University of Arizona medical school and in Eller's economics department, 25% of uninsured report forgoing needed care and 2/3 of these uninsured citizens report a lack of a usual source of medical care. He also found that uninsured citizens are also less likely to receive preventive care, are more likely to be hospitalized for conditions that could have been prevented, and are more likely to die in the hospital. Therefore, I concluded that lack of insurance coverage is a factor of our nation's poorer health. 

I concluded that lifestyle contributes to overall health outcomes as well. The U.S. Department of Health and Human Services states that improved health-conscious lifestyles have contributed to the global rise in life expectancy. Thanks to modern science, we now know that our diets, exercise, and sleep contribute to our overall health. We also know that is it important to abstain from tobacco and excessive alcohol consumption. 

We may have modern medicine, share health data, and know that health-promoting behaviors contribute to our overall health, but we in the United States have not been great at practicing healthy behaviors. We also do not provide universal access to health care. Until we address these problems, we may never be able to better compete with other developed countries on health outcomes. 

Comments

  1. First of all, thanks for covering such an important topic. I'll give you an idea about the perception which third world countries (that's where I belong to) have about USA healthcare system. The general notion about USA Healthcare System is that it is one of the most advanced and technologically equipped systems. Also, there are no problems with USA healthcare in terms of quality of care and care coordination. While former might be true, latter is an absolute myth. That is why I find your area of research so interesting.

    As shown in your blog and research, Japnese Healthcare system is indeed doing great and this might be attributed to the healthy lifestyle as well good healthcare infrastructure. Germans are also doing great with the preventive healthcare practices and healthy lifestyle.

    I would like to know about the healthcare conditions on the other side of the spectrum. Maybe how developing countries are doing in healthcare domain and what is hindering them from making healthcare a commodity and not a luxury. Another thought I have is, a comparison between Mexico, Canada, and the USA. These countries have geographic proximity and their some impact on policies which influences healthcare.

    On a side note, your presentation and blog are beautifully designed. I would like to learn a trick or two from you (if possible) on learning the art of making the deliverable visually appealing. Overall, tremendous job with your presentation and the research. I learned a lot from your research. Thank you!

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  2. I enjoyed your blog post and blog! It looks so professional, clean and minimalistic, I really like it! I think what I really liked from your presentation and what I learned was that other countries use a healthy lifestyle as the cornerstone for strong healthcare. I thought it was very interesting how Japan teaches their children from a young age healthy habits such as eating healthier, walking or biking to school, and regular exercise.

    This was a theme that was repeated in Germany as well. I truly believe that we can solve our nation’s healthcare crisis by implementing a healthier diet, using locally sourced and farm fresh produce and poultry, while cutting out enriched flour, high fructose corn syrup, dyes and additives out of our diet. Do you think that the root problem of our healthcare system is how we approach our own health?

    Also, do you think Corporate America is to blame for the poor healthcare system of our country? I ask the previous question because companies such as Frito-Lay, General Mills and Post are responsible for stocking our groceries with unhealthy snacks such as Cheetos, Fritos, Doritos, as well as sugary cereals laced with dyes and preservatives such as Froot Loops, Fruity Pebbles etc.

    In addition, insurers such as United Healthcare and pharma companies such as Purdue pharma render our nation crippled as they leave many of our citizens addicted to opioid painkillers that are often unaffordable with skyrocketing healthcare premiums causing citizens to choose between things such as rent, food, or medication.

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  3. I really like the layout of your blog and your slide design. Your topic particularly intrigued me because I'm considering living in another country after graduation and I enjoyed seeing the benefits that are available in other countries. I like the breakdown you provide in your presentation of the different US health providers because I believe this is a big part of why our healthcare system is the most costly and lower quality.

    This reminds me of the part of the New York Times "Paying Till It Hurts" case I focused on earlier in the semester. The article had a nice visual that showed how much medication one could get in the US versus other countries for the same amount of money. The difference was often huge, like the US versus Saudi Arabia, where the difference in the number of pills someone could get was over 9,000. This is very similar to your slide where you show a cost comparison of a hip replacement in multiple countries.

    My biggest take-away from your presentation is the slide where you show the number of bankruptcies that happen in each country due to medical bills and it's astounding that this happens in this country at the rate that it does.

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  4. Excellent blog, presentation, and final blog. When you cover healthcare around the world, you could pick many countries compared to the U.S., and find similar results. As T.R. Reid points out, healthcare is never going to satisfy everyone all of the time. In his chapter on Different Models, Common Principles, he decided to visit countries that cover the four models discussed and are in countries that have a political economy (and larger than Pittsburgh). Japan and Germany follow the Bismarck model, but they come from different cultures and have different ways of staying healthy. Moreover, "nobody's system is perfect." We may live longer, healthier lives, but medical advances are also expensive. "In every rich country, there is so much money floating through the health care system that some people can't resist the temptation to cheat."

    What I liked about this chapter was this Universal Laws of Health Care Systems as American economist, Tsung-Mei Cheng formulated:
    1. "No matter how good the health care in a particular country, people will complain about it."
    2. "No matter how much money is spent on health care, the doctors and hospitals will argue that it is not enough."
    3. "The last reform always failed."

    So no matter what country you study, as Reid contends, these Universal Laws held true. Of course, a comparison with healthcare in other countries compared to the U.S. reveals so much more than this. Thank you for sharing that with us.

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  5. Hello Hannah,
    I really enjoyed reading your presentation on “what makes people in Japan and Germany healthier?” I have heard throughout my life that Japan is an extremely healthy country but I had no idea that German was also among the healthiest. I knew our life expectancy in the U.S. is definitely not the best but I had no idea that we were as low as 42nd. These are the two main things that I learned from your presentation.

    There is an obvious problem here because if the U.S. is number one in medical research we should be higher in life expectancy. I think you did a really good job analyzing this problem as well as how you presented it. Being able to see the difference in health care systems between Japan, Germany, and the U.S. helped me better understand why we are ranked what we are. Based off of what you researched and presented I still cannot believe that Japan has one of the least expensive health care system and yet has the best health outcome.

    As far as what I would like to know further, in addition to what you presented I would like to know further about how the U.S. plans to better its healthcare system. I think the U.S. should look into Germany and Japans healthcare models but I don’t know how well they would work for us.

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