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How Can U.S. and Japanese Healthcare Costs Be So Insanely Different?

Jeffrey Goodman
13 min readAug 30, 2023

How many Americans would walk barefoot over hot broken glass to get to a healthcare system like Japan has? How much do you already know about Japan’s healthcare system?

Photo by National Cancer Institute on Unsplash

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The U.S. and Japan are literally on opposite sides of the planet, especially when it comes to healthcare.

There’s no question that healthcare costs are dramatically higher in the U.S. than in Japan. This has been true for decades.

It’s also a fact that when it comes to one of the biggest picture metrics of health there is — life expectancy — Japanese live years longer than Americans. This, too, has been true for decades.

(For more details on healthcare costs vs. life expectancies in each country, this article goes in-depth: “Life Expectancy vs. Healthcare Costs in the U.S.)

But what does this look like on a day-to-day basis in Japan?

What could be causing such discrepancies between these two countries?

For help with this question, I turned to a Tokyo-based YouTuber named Paolo and a video he released over 4 years ago.

I first saw this video on the Paolo from Tokyo YouTube Channel in early 2019.

Having lived in Japan myself, I instantly recognized a great piece of work like his 7-minute “How Much I PAY at a Japanese Hospital on Japan’s Healthcare System” video when I saw it.

Jeffrey Goodman
Jeffrey Goodman

Written by Jeffrey Goodman

Navigating facts and numbers to help people. Strong opinions on climate change and healthcare. Objective, not neutral. MIT engineer, Wharton MBA.

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