Policy 103 – Why Is It So Expensive?

Medicare For All Basics

Why Is It So Expensive?

The short answer

There are too many middlemen.

The Details

For profit insurance spends large portions of their budget on things like…

  • Administration
  • Marketing and advertising
  • Large claims departments who determine whether a procedure a doctor recommends is actually “medically necessary”
  • Inflated executive salaries, and
  • Record breaking profits

They cause problems on the provider side too…

  • The average physician in America spends about $83,000 a year in staff time and resources interacting with insurance companies
    • That’s four times as much as their Canadian counterparts
    • Hospitals, pharmacies, nursing homes, family doctors, and more are forced to spend time verifying insurance, determining whether service will be covered, appealing denied claims, and setting up multiple insurance contracts.

This is all money that is wasted before a single dollar is spent on the delivery of care

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