In a new study, the Commonwealth Fund, an independent research group, explores the reasons behind the high health care spending in the U.S., which is significantly higher than in other developed countries. Key drivers include administrative costs, physician and nurse salaries, and prescription drug prices. The study suggests that these factors, primarily related to higher prices rather than increased utilization, contribute to "excess" spending. Reducing administrative burdens and drug costs could potentially lower health care expenses, improving affordability and access for patients.
Healthcare Costs are Nearly Twice as High as Peer Countries
While studying health statistics from the Organization for Economic Cooperation and Development, or OECD, researchers compared the US to28 high-income countries. The results showed that in 2021, health expenditures per person (including government, private, and out-of-pocket spending) were almost double that of the average across OECD countries, and nearly three to four times higher than South Korea, New Zealand, and Japan.
The Commonwealth Fund also supplemented their research and analysis of OECD Health Statistics data with other studies and literature examining:
· Characteristics of international health systems
· Studies of “waste” in the US health system
· Studies of drivers of US health care prices
· The supply of health care goods and services, and health input costs
Conclusions outline how the United States spends more on healthcare than any other country but often sees poorer health outcomes compared to nations with similar wealth. Rising healthcare costs for patients are driven by high prices for medical services, medications, and administrative costs, rather than the volume of services provided. Despite high spending Americans face challenges accessing affordable care, leading to financial strain and sometimes inadequate treatment. This trend indicates that without addressing cost drivers, patient expenses will continue to rise, potentially worsening access and quality of care.
How Banjo Health Can Help
At Banjo Health, we strive to have a bias towards action. We understand that while we may not be able to solve all the complex struggles of the US healthcare system, we can make a difference in the lives of the people we serve.
Banjo Health helps provide timely access to care for patients while reducing administrative costs by automating and streamlining the prior authorization (PA) process. Traditional PA processes are often administratively complex and slow, leading to delays in patient care. Banjo Health addresses this by utilizing AI-driven technology to reimagine PA from the ground up. Their solution reduces manual effort, speeds up decision-making, and cuts down the time required to convert and manage clinical guidelines. This results in faster PA turnaround times, improved workflow efficiency, and significant cost savings for healthcare providers.
For example, Banjo Health's platform can reduce the time to create decision trees from up to 20 hours to just 1-2 hours, and update criteria from 3-4 weeks to just 10 days. This not only accelerates patient access to necessary treatments but also alleviates the administrative burden on healthcare providers, allowing them to focus more on patient care rather than on bureaucratic processes
To learn more about Banjo Health, visit our website at Home - Banjo Health - Intelligent Prior Authorization
Source: High U.S. Health Care Spending | Commonwealth Fund
