Excessive Administrative Costs
25-30% of the money that each
one of us spends for health care
goes to administrative costs
instead of going to our health care!
- WHERE DOES THE MONEY GO?
- FOR-PROFIT BUREAUCRACY
- The operations of over 1300 health insurance companies
- Billing staffs that are required to deal with the hundreds of insurance companies in private physicians’ offices and hospitals
- … and more
- GOVERNMENT BUREAUCRACY
- Multiple federal government programs that run in 50 states
- Multiple state government programs
- … and more
- FOR-PROFIT BUREAUCRACY
At least $350 Billion More Could Be Spent
on Health Care Instead of Bureaucracy
Let’s Eliminate the Bureaucracy (Inefficiency).
WE MUST BE COST-EFFICIENT!
Sources and Calculation
- An in-depth analysis_pdf of all administrative costs associated with health care was done by Woolhandler, Campbell, and Himmelstein . The analysis compared Canada (single-payer financing) and the United States. — New England Journal of Medicine 8-21-2003.
- The Calculation
- Roughly a third of the $2.2 trillion of U.S. health care spending goes for administration.
- The improved efficiency of non-profit single-payer will “free up” at least half of the roughly $700 billion of administrative costs. Thus, at least $350 billion of money will shift from administrative costs to health care.