Bureaucracy Accounts for 1/3 of Healthcare Costs in U.S.


One of thousands of billing clerks

Sure, you’re gonna have some bureaucracy, but one-third of total cost? Ridiculous!

From Reuters:

U.S. insurers and providers spent more than $800 billion in 2017 on administration, or nearly $2,500 per person – more than four times the per-capita administrative costs in Canada’s single-payer system, a new study finds.

Over one third of all healthcare costs in the U.S. were due to insurance company overhead and provider time spent on billing, versus about 17% spent on administration in Canada, researchers reported in Annals of Internal Medicine.

Cutting U.S. administrative costs to the $550 per capita (in 2017 U.S. dollars) level in Canada could save more than $600 billion, the researchers say.

Source: More than a third of U.S. healthcare costs go to bureaucracy – Reuters

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