Administration, drug prices at the center of Americans’ excess health care spending

Medical Economics October 5, 2023
Richard Payerchin

Physician wages are part of the equation too, according to new report by The Commonwealth Fund.

Administrative costs, prescription drug prices, physician and nurse salaries, and medical equipment investment make American health care the costliest in the world.

The Commonwealth Fund analyzed “excess” spending in the new study, “High U.S. Health Care Spending: Where Is It All Going?” Doctors’ pockets, for one – but that’s not the only place.

“Reductions in administrative burdens and drug costs could substantially reduce the difference between U.S. and peer nation health spending,” the study said.

American patients pay more than patients in other developed countries for:

• Administrative costs of insurance – 15% of excess spending
• Administrative costs borne by physicians and other providers...

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