How can U.S. healthcare save more than $600B? Switch to a single-payer system, study suggests

Fierce Health Payers January 7, 2020
Joanne Finnegan

Healthcare administrative costs are four times higher in the U.S. than in Canada, which has a single-payer system, according to a new analysis.

U.S. healthcare could save more than $600 billion in administrative costs by adopting a single-payer system like neighboring Canada, a new study suggests.

The U.S.’s current multi-payer system cost the country $812 billion in administrative costs in 2017—four times more than Canada, which has a single-payer system—mostly due to the increasing overhead of private insurers, according to a study in the Annals of Internal Medicine.

The study concluded that cutting U.S. administrative costs to Canadian levels by adopting single-payer health financing would have saved more than $600 billion.

The study could provide ammunition to proponents who are...

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