The health care administrative spending bloat

Administrative costs make up a much larger share of health care spending in the U.S. than in other high-income countries, according to a new analysis by the Center for American Progress.

Adapted from a Center for American Progress chart; Chart: Axios Visuals

The big picture: In 2016, we spent 8.3% of our health care dollars on administration, while the next-highest spender — France — spent only 5.7%.

  • This is at least partially because of how complex and fragmented our health care system is.

By the numbers: Of the $496 billion spent a year by health insurers and providers on billing and insurance-related costs — and then passed on to consumers — CAP estimates that $248 billion is unnecessary.

Go deeper: The unique problem with U.S. healthcare