According to a study in the Annals of Internal Medicine, United States insurers and providers spent $812 billion (34.2%) on healthcare administration in 2017, or $2,500 per American.
By comparison, Canada spent $551 per person on healthcare administrative costs, totaling 16.7% of total spending in Canada.
The gap in health administrative spending between the United States and Canada is large and widening, and it apparently reflects the inefficiencies of the US private insurance–based, multipayer system. The prices that US medical providers charge incorporate a hidden surcharge to cover their costly administrative burden.
