Question
According to the numbers in Emanuel's table, about what percentage of total health care spending in the U.S. is accounted for by administration? How does
According to the numbers in Emanuel's table, about what percentage of total health care spending in the U.S. is accounted for by administration? How does this compare with what Reinhardt and Cutler suggest, and with Drum's conclusion about the share of healthcare employment that is engaged in administration? What accounts for the difference between what Emanuel and the others find? (Hint: Emanuel's numbers for administration come from Papanicolas et al., and count only administrative costs incurred by government and private insurers (and insurer profits).) Could the administrative costs not counted by Emanuel be a partial explanation for why prices of many medical services are much higher in the U.S. than in other countries? Explain
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