22 August 2003

31 Cents of Every Dollar Spent on Health Care in the United States Pays Administrative Costs

And that rate is nearly double the rate in Canada.
Researchers who prepared the comparison said today that the United States wasted more money on health bureaucracy than it would cost to provide health care to the tens of millions of the uninsured. Americans spend $752 more per person per year than Canadians in administrative costs, investigators from Harvard and the Canadian Institute for Health Information found.


Comments

"Researchers who prepared the comparison said today that the United States wasted more money on health bureaucracy than it would cost to provide health care to the tens of millions of the uninsured."

What a worthless statement. Providing subsidized health care would cost all that money, and then you'd have to add the health bureaucracy costs on top of it.

Canada an example? Don't count on it. Procedures and equipment are rationed.

Real solution: eliminate every attempt to make health care appear "free" or "paid by somebody else." So long as we have "somebody else" paying part or all of health care, the demand for it will skyrocket and the prices will go up and somebody will have to install amdministrative controls and then we get the foul bureaucracy.

Ever notice? No bureaucratic snarls in buying food or gas or dry cleaning ... because the consumer pays the cost directly ... he/she doesn't pay a "visit charge" and then try to get some third-party payer to cover the rest.