Health Care Bureaucracy Cost Americans $812 billion in 2017

I found this article interesting. A study published on January 6, 2020, in the Annals of Internal Medicine finds that health care bureaucracy:

  • Cost Americans $812 billion in 2017
  • Is more than one-third (34.2%) of total expenditures for doctor visits, hospitals, long-term care, and health insurance.
  • Is bad and cutting U.S. administrative costs to Canadian levels would have saved more than $600 billion in 2017.

Wait, what? Why are they bringing Canada’s system up? Oh, I get it, I got click baited into a political piece.

  • The analysis, the first comprehensive study of health administration costs since 1999, was carried out by researchers at Harvard Medical School, the City University of New York at Hunter College, and the University of Ottawa. 
  • “Medicare for All could save more than $600 billion each year on bureaucracy, and repurpose that money to cover America’s 30 million uninsured and eliminate copayments and deductibles for everyone,” said study senior author Dr. Steffie Woolhandler, a distinguished professor at the City University of New York (CUNY) at Hunter College and lecturer in Medicine at Harvard Medical School, where she previously served as a professor. “Reforms like a public option that leave private insurers in place can’t deliver big administrative savings,” Dr. Woolhandler added. “As a result, public option reform would cost much more and cover much less than Medicare for All.”

Damn, I hate when I get suckered in. Yes, the “paperwork” is not really paperwork. It is administrative bullshit due to government mandates and the best way to fix this, according to these idiots, is to add more government mandates.

Riddle me this Batman:

  • Show me where and when our government ever saved money.
  • Show me how long Canadians wait for care and how Americans will accept that wait.
  • Oh, let’s not forget how we pay more for drugs (our Medicare system) so that other countries can pay less.

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Douglas Farrago MD

Douglas Farrago MD is a full-time practicing family doc in Forest, Va. He started Forest Direct Primary Care where he takes no insurance and bills patients a monthly fee. He is board certified in the specialty of Family Practice. He is the inventor of a product called the Knee Saver which is currently in the Baseball Hall of Fame. The Knee Saver and its knock-offs are worn by many major league baseball catchers. He is also the inventor of the CryoHelmet used by athletes for head injuries as well as migraine sufferers. Dr. Farrago is the author of four books, two of which are the top two most popular DPC books. From 2001 – 2011, Dr. Farrago was the editor and creator of the Placebo Journal which ran for 10 full years. Described as the Mad Magazine for doctors, he and the Placebo Journal were featured in the Washington Post, US News and World Report, the AP, and the NY Times. Dr. Farrago is also the editor of the blog Authentic Medicine which was born out of concern about where the direction of healthcare is heading and the belief that the wrong people are in charge. This blog has been going daily for more than 15 years Article about Dr. Farrago in Doximity Email Dr. Farrago – [email protected] 

  2 comments for “Health Care Bureaucracy Cost Americans $812 billion in 2017

  1. Aaron M. Levine
    February 28, 2020 at 10:30 am

    I just got off a phone call asking me to vote for Bernie in next weeks Texas primary. I was told his Medicare for all would solve the cost issue for health care. The caller was stumped when I asked how it would be paid for without rationing. Basic economics is insatiable demand, limited resources. They could not figure there was not enough doctors to provide unlimited care. I pointed out the wait in the Canadian system and told I was misled. I explained that the NIHCE has a cost for a year of life in England and that Ezekiel Emmanuel suggested it for the US when he advised Obama. I was then told I was just a typical boomer not understanding the real world.

  2. Pat
    February 23, 2020 at 6:27 pm

    How noble for academicians to push for “solutions” that won’t affect their paychecks.

    Care would be so much quicker, so much cheaper, so much better without all the EHR/admin bullshit forced on us by the government, NONE of which contributes in the least to patient care.

    So for all of you morons that think health care is a right: you deserve what you’re gonna get.

Comments are closed.