WASHINGTON—U.S. Senators Bill Cassidy (R-LA) and Tina Smith (D-MN) introduced bipartisan legislation to develop innovative ways to reduce unnecessary administrative costs in the U.S. health care system. The bill directs the secretary of Health and Human Services (HHS) to take steps toward reducing unnecessary administrative costs across the health care system by at least 50 percent. It also provides support for states to tackle this challenge at the local level.
It’s estimated that administrative costs account for 25 percent of hospital spending in the United States, more than twice as much as in other developed nations.
“More than one out of every four dollars spent in America on health care may go toward administrative costs,” said Dr. Cassidy. “Eliminating wasteful health care spending will lower costs for patients and improve access to quality care.”
“Our bipartisan bill aims to reduce health care costs for individuals, families, and the system more broadly by calling on the federal government to eliminate unnecessary costs and administrative burdens,” said Senator Smith. “Cutting out this administrative waste can improve patient care and reduce the hassle health care providers face when delivering care. Our bill builds off important work underway in Minnesota, Louisiana and states across the country to cut wasteful spending while upholding high-quality patient care.”