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20% of Health Insurance Costs is for Paperwork

November 15, 2005 by Jonathan Stein

I came across this twice this article weekend and thought it was something to pass on. 20% of your health insurance premium is going to billing and paperwork. So, if you spend $500 per month on health insurance for your family, $100 is just for billing and paperwork. That seems to me to be amazingly high, especially when the property and casualty insurance business does not spend anywhere near that number for paperwork.

The study concludes that public health insurance does not have the same issue with billing and paperwork. While I am not sure that public health insurance is the way to go, I think that the insurance companies needs to start using technology to trim the fat and return some of the savings to consumers.

Categories: Life and Health Insurance

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