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Excessive Administrative Costs:
Extreme Inefficiency


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, as per the full explanation in the previous web page
    • GOVERNMENT BUREAUCRACY
      • Multiple federal government programs that run in 50 states
      • Multiple state government programs
      • … and more, as per the full explanation in the previous web page

At least $350 Billion More Could Be Spent
on Health Care Instead of Bureaucracy

Let’s eliminate the inefficiency
by eliminating the bureaucracy
.
WE NEED COST-EFFICIENCY!


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.
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Universal Health Care, Improved Medicare for All as per U.S. House Resolution 676
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