Health care payers spend approximately $500 billion per year on billing and insurance-related costs annually, and as much as $250 billion of that is wasted in excess administrative spending.
The U.S. health care system could save 60% in billing costs by standardizing and simplifying contracts between providers and insurers, a new study has found. The report, published in Health Services Research (HSR), and summarized at the blog The Incidental Economist, suggests that there are ways to bring down health care costs without radically changing the U.S. health care system.
According to the Center for American Progress, health care payers and providers in the U.S. spend approximately $500 billion per year on billing and insurance-related (BIR) costs annually, and as much as $250 billion of that is wasted in excess administrative spending.
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