$230 billion spent on insurance paperwork

Nov 12, 2005

Billing and insurance paperwork consume at least one out of every five dollars of private insurance health spending in California, a study finds.

The findings suggest that about $230 billion in healthcare spending nationally is devoted to insurance administration, according to study leader Dr. James G. Kahn, of the University of California, San Francisco.

"Over the last decade, administrative costs have accounted for 25 percent of health care spending," said Kahn. "Little has been known, however, about the portion attributable to billing and insurance-related functions."

Kahn analyzed data from private insurers, physician offices and hospitals and focused on spending in doctor's offices and hospitals, which represent 80 percent of all privately insured health spending.

He found private insurers use about 10 percent of premiums for billing, marketing, financial activities and profit; while physician offices spent 14 percent of their income on insurance paperwork and hospitals spend 9 percent on insurance paperwork.

The findings appear in Health Affairs.

Copyright 2005 by United Press International

Explore further: Tax benefits for housing not as outsized as previously thought, study says

add to favorites email to friend print save as pdf

Related Stories

Obama says climate change deniers ignoring science

Jun 14, 2014

(AP)—President Barack Obama said denying climate change is like arguing that the moon is made of cheese, as he issued a call for action on global warming to Saturday's graduates of the University of California, ...

Better climate predictions within grasp

Apr 14, 2014

that will improve our understanding of the consequences of climate change and could save the global economy up to $30 trillion - has received funding to develop a more detailed design of the technology and identify partners. ...

Target exec's departure puts spotlight on CIOs

Mar 06, 2014

The departure of Target's chief information officer in the wake of the company's massive pre-Christmas data breach highlights the increased pressure facing executives who are charged with protecting corpora ...

Tech bugs plague federal projects

Dec 05, 2013

t was an ambitious federal technology project, tying together a string of government databases in one Web portal. But the launch was a giant mess: contract missteps, broken deadlines, cost overruns. Users complained the site ...

Recommended for you

Jurassic Welsh mammals were picky eaters, study finds

13 hours ago

For most people, mere mention of the word Jurassic conjures up images of huge dinosaurs chomping their way through lush vegetation – and each other. However, mammals and their immediate ancestors were also ...

The changing landscape of religion

16 hours ago

Religion is a key factor in demography, important for projections of future population growth as well as for other social indicators. A new journal, Yearbook of International Religious Demography, is the first to bring a quan ...

User comments : 0