Health care paperwork racks up more than $800 billion in costs in 2017

Around 34% of health care costs in the U.S. in 2017 — for a total of $812 billion — was for administrative paperwork, according to new research. When considered as the cost per person, the U.S. spent nearly five times as much on paperwork that year than what Canada spent. The U.S. also vastly outspent Canada in a range of categories, including insurers’ overhead, hospital administration, and physicians’ insurance. The study also found that since 1999, administrative costs in the U.S. have increased 3.2%, most of which is due to an increase in insurers’ overhead costs. The findings may provide further evidence that proponents of a nationalized health care system could use, as they often cite the exorbitant costs associated with a private system, given that many insurance companies and hospitals underwrite administrative costs into their fees.