34% of Health Care Spending Used for Administrative Costs

According to a new study in Health Affairs, 34% of health care spending is used for administrative costs. In the study, researchers led by James Kahn (Institute of Health Policy Studies at the University of California-San Francisco) analyzed data collected from 73 insurers between 1996 and 2001, survey responses from physicians and hospital administrative costs reported to the state. The study is available online at http://content.healthaffairs.org/cgi/content/full/24/6/1629

Citation: Kahn, J.G., et al. "The Cost Of Health Insurance Administration In California: Estimates For Insurers, Physicians, And Hospital" Health Affairs, Vol 24, Issue 6, 1629-1639.