The health care system could reduce costs by $332 billion over the next 10 years if health care providers convert to electronic systems, according to a report released Tuesday by UnitedHealth Group, the Minneapolis/St. Paul Business Journal reports.
Of the total savings, the report estimates that:
- 50% would go to hospitals and physicians;
- 30% would go to commercial payers; and
- 20% would go to Medicare and Medicaid.
UnitedHealth said eliminating paper records would account for most of the savings. For example, the report estimates that submitting payments and remittances electronically could save more than $108 billion in postage, printing and administrative costs.
The insurer also said that a national claims monitoring system could save more than $47 billion.
The estimated figures include only administrative savings, and do not account for any savings generated if electronic systems help reduce wasteful medical practices.
However, the report said that the administrative savings could help offset the costs of health care reform efforts aimed at expanding insurance coverage (Newmarker, Minneapolis/St. Paul Business Journal, 6/30)