The Healthcare Billing Industrial Complex

The administrative cost of the US healthcare billing system

The Cost

The United States spends approximately 34 percent of total healthcare spending on administrative costs -- billing, coding, insurance verification, claims processing, denial management, and the infrastructure of a multi-payer system where every provider must maintain billing relationships with hundreds of insurance plans.

The Comparison

Canada spends approximately 12 percent of healthcare spending on administrative costs under its single-payer system. The difference is approximately 22 percent of US healthcare spending -- approximately 1 trillion dollars annually that the US spends on healthcare administration that the comparable Canadian system does not. The trillion dollars is not producing better health outcomes. It is producing billing.

The Analysis

The Mamdani Post covers the healthcare billing industrial complex because the administrative cost of the multi-payer system is the most concrete quantification of what the single-payer alternative would save.

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