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Table 1 2012 U.S. National Health Expenditures, percent billing and insurance-related (BIR), and BIR proportion considered “added”

From: Billing and insurance-related administrative costs in United States’ health care: synthesis of micro-costing evidence

Sector 2012 NHE (projected, in billions) % for BIR costs Source/reference for % BIR Proportion considered “added” Source for proportion added
Physician practices $542.9 13% Three studies of BIR costs in physician practices in the U.S. [5],[7],[9] 0.73 U.S. & Canadian physician survey [5]
Hospitals $873.1 8.5% Midpoint BIR for hospitals [7] 0.73 U.S. & Canadian physician survey [5]
Other health services and supplies $938.8 10% Assumption (mean percentage from physician practices and hospitals) 0.73 U.S. & Canadian physician survey [5]
Private insurers $884.4 18% 2010 mean admin expenses, including profit, as % premium revenue for a sample of large and small private insurers, weighted by insured enrollment (Authors’ analysis of SEC data) 0.92 Private insurer overhead vs. Medicare overhead (1.5%) [13]
Public insurers $1,139.5 3.1% Blended average overhead for Medicare (1.5%) and Medicaid (4.6%) [13] based on authors’ calculations using 2011 NHEA data 0.52 Public insurer overhead vs. Medicare overhead [13]