- 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.
Cutting U.S. administrative costs to the $550 per capita level in Canada could save more than $600 billion, the researchers say. They also found there had been a 3.2% increase in U.S. administrative costs since 1999, most of which was ascribed to the expansion of Medicare and Medicaid managed-care plans. Overhead of private Medicare Advantage plans, which now cover about a third of Medicare enrollees, is six-fold higher than traditional Medicare , they report. That 2% is comparable to the overhead in the Canadian system.
The new study is “the first analysis of administrative costs in the U.S. and Canada in almost 20 years,” said Dr. Albert Wu, an internist and professor of health policy and management at the Johns Hopkins School of Public Health in Baltimore. “It’s an important paper.”
ok - now do colleges and schools
Medicare for all now! notmeus PresidentSanders M4A
No kidding. Which is why we need singlepayer MedicareForAll
andrewperezdc How r we going to pay for this
Interesting. Up here in Canada, we average 3-5% depending on the province. And still, we have conservatives who whine and blather about “bloat”.
noalpha_allbeta sigh
Really? If only there were some way to reduce that bureaucracy, eliminate inefficiency to make it work better. I can't imagine how.
Now there’s a thing that needs reform....
Not surprised. I have a folder 6 inches thick for my mom. Most of it unfathomable.
1000 hour project every year to keep up with new compliance measures get expensive.