Reducing Administrative Costs in U.S. Health Care | The Hamilton Project

The ProblemAdministrative costs account for one-quarter to one-third of total health-care spending in the United States—far greater than the amount necessary to deliver effective health care. Excessive administrative burden results in higher costs for physicians, insurers, and patients alike.The ProposalCutler proposes several reforms to the U.S. health-care system aimed at reducing administrative costs. Specifically, his proposal would establish a clearinghouse for bill submission, simplify prior authorization, harmonize quality reporting, and enhance data interoperability in the health-care system. Cutler’s proposal to lower administrative costs could save $50 billion annually.

Source: Reducing Administrative Costs in U.S. Health Care | The Hamilton Project

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