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] |