“The complexity of the system comes with costs that aren’t obvious but that we all pay.”
“Medical records at a health center in Rogersville, Pa., last year. American health administrative costs are largely hidden from view of the public. CreditBrendan Smialowski/Agence France-Presse — Getty Images”
by Austin Frakt
“It takes only a glance at a hospital bill or at the myriad choices you may have for health care coverage to get a sense of the bewildering complexity of health care financing in the United States. That complexity doesn’t just exact a cognitive cost. It also comes with administrative costs that are largely hidden from view but that we all pay.
“Because they’re not directly related to patient care, we rarely think about administrative costs. They’re high.
“A widely cited study published in The New England Journal of Medicine used data from 1999 to estimate that about 30 percent of American health care expenditures were the result of administration, about twice what it is in Canada.”
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