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

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.