May 2, 2019

Cassidy, Smith Introduce Bipartisan Bill to Cut Wasteful Health Care Costs

WASHINGTON–U.S. SenatorsBill Cassidy, M.D. (R-LA), and Tina Smith (D-MN) introduced the Reducing Administrative Costs and Burdens in Health Care Act, bipartisan legislation to help develop innovative ways to reduce unnecessary administrative costs in health care. Estimates suggest that administrative costs account for over one quarter of total health care spending in the United States.

 “We should spend money making people healthy, not on administrative waste,” said Dr. Cassidy. “We need to lower health care costs for American families and this bill is an important step.”  

“Our bipartisan bill aims to reduce health care costs by calling on the federal government to eliminate unnecessary costs and administrative burdens,” said Senator Smith. “Cutting out administrative waste can improve patient care and reduce the hassle health care providers face when delivering quality care for people in Minnesota and across the country. Our bill builds off important work already underway in states to cut wasteful spending while upholding high-quality patient care.”

The Reducing Administrative Costs and Burdens in Health Care Act will cut unnecessary costs by:

  • Reducing federal spending by requiring the federal government to develop and execute a plan to reduce administrative costs across the health care system by at least 50 percent over the next decade, without affecting the quality of care.
  • Supporting state-level innovation by providing resources to curb administrative costs in key areas, including physician and hospital credentialing, the use of and exchange of data, and compliance measures. The bill also provides support to accelerate the adoption of new technologies that will support the integration of clinical and administrative systems.  

In his commitment to lower the cost of health care for Americans, Cassidy introduced a package of legislation last month to lower drug prices by getting generics to market faster.