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I
was called to a hospital recently to find one of my friends had
suffered a serious health problem. I was duly signed in as his
next of kin and experienced the intricacies of the Japanese
healthcare system up-close and dirty.
All in all, the experience was not bad. He was very lucky, and will
recover in about three months. He was initially misdiagnosed, a
revolutionary drug available overseas was not available here, and we
experienced racism when we had to change hospitals, but in the end
he was admitted when I negotiated a room. On the whole, the staff
were kind and showed the sort of compassion and sympathy that had
I experienced it in my native UK, I would have fallen over with
shock and needed resuscitation myself.
But on to the main point the hidden cost of medical care in
Japan. Having previously worked in the Japanese medical industry, I
was in a good position to understand what was going on. My friend
was thankful that he had medical cover through his company.
Nevertheless, I had to explain to him the financial issues that accom-
pany a stay in hospital.
I have medical insurance right? I am covered he said.
Well yes ... and ... no.
What do you mean? he asked.
Well you have insurance, but you are not fully covered ... I went on ...
Lets clarify this the Japanese national healthcare system (in this
instance we include the so called company provided health
insurance through a healthcare union). These are schemes
recognized by the Japanese government and for which a portion of
your salary, say 9% is deducted.
Are You Really Insured?
Text: Allan Jardine
Perspectives on Japan
Question 1: Do you p la y English ?!
Answer 1: Yes I do, at
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Many foreigners in Japan believe they are covered by their medical
insurance, well, ... not quite. Typically, the psychology is But when
I go to the doctor and he charges 5,000, I pay say 1,000 (the
co-payment) and the rest is covered, no problem!
Insurance is like a sports car, in normal traffic, it is difficult to
judge the dynamics. If going to the doctor for
some medicine at 5,000 is equivalent to
rambling through traffic, it is when you are
speeding along the highway at 200kph and a
truck pulls out in front of you that is when
the handling and brakes get tested but at
that point, it is too late. The golden rule with
insurance and medical insurance especially is
you can never get it when you really need it.
Many foreigners do not know that hospital meals, laundry and bed
charges are not considered medical expenses and are financially
met 100% by the patient. With these add-ons plus the co-payment
which is capped in high cost cases EVEN if you are insured
treatment could cost around 300,000 cash per month depending on
the room you request. So the full cost in my friends case will be
800,000 paid in cash each month, and around 500,000 refunded
three months later.
On this basis, if you have a six month stay
in hospital it could cost 1,800,000
(300,000 x 6 months). Whats more, the
full amount needs to be cash-flowed for
three months (2,400,000 = 800,000 x 3
months).
This figure only covers what I term direct
and essential hospital costs; it excludes other costs such as
telephone, travel for relatives and friends as well as new clothing and
equipment for recovery etc. And you thought you had medical
insurance!