Administrative costs Appaloosa; Time Magazine uncovers why we spend so much more than Canada for healthcare administrative costs.
Depending on what you read and what you watch, you may get different people telling you why people in the U.S spend so much on healthcare.
We pay more than any other country for healthcare services. Time Magazine recently evaluated reported that the U.S. spends about 500% more on healthcare administrative costs compared to Canada. The question is why?
According to Time, 34% of healthcare costs are due to administration which is twice what Canada spends. This is according to a recent article published in the Annals of Internal Medicine. The paper compared healthcare costs between the U.S. and Canada in 2017.
Apparently, a single payor system is likely to be the only logical next step to reducing costs and administration according to the article. Perhaps, we need to emulate countries that get this right instead of reinventing the wheel.
According to experts, the administrative costs alone could allow us to give everyone in the U.S. health insurance for free. Perhaps, those who are promoting the idea of Medicare for All have the right idea. Will our broken political system allow it to happen?
Check out the article below.
The U.S. Spends $2,500 Per Person on Health Care Administrative Costs. Canada Spends $550. Here’s Why
BY ABIGAIL ABRAMS JANUARY 6, 2020
Whether it’s interpreting medical bills, struggling to get hospital records, or fighting with an insurance provider, Americans are accustomed to battling bureaucracy to access their health care. But patients’ time and effort are not the only price of this complexity. Administrative costs now make up about 34% of total health care expenditures in the United States—twice the percentage Canada spends, according to a new study published Monday in Annals of Internal Medicine.
These costs have increased over the last two decades, mostly due to the growth of private insurers’ overhead. The researchers examined 2017 costs and found that if the U.S. were to cut its administrative spending to match Canadian levels, the country could have saved more than $600 billion in just that one year.