Every year in the United States, insurers and healthcare providers spend more than $800 billion on administration costs. A massive system of employees, who are not directly involved in patient care, cost the average American a whopping $2,497 each year.

In comparison, the per capita cost of healthcare administration in Canada is $551. Prior to implementing a single-payer system, Canada’s healthcare costs closely resembled the United State’s. Now the gap in health administrative spending is large and growing even larger.

These findings come from a new study published in the Annals of Internal Medicine. The conclusions made from the research have political implications, here and abroad.

Conservative governments across Canada have been mulling the possibility of privatization in our healthcare system. Doug Ford in Ontario has kept many of his plans secret, though some have been brought to light. Meanwhile, Jason Kenney in Alberta is already moving forward with his plans to open the door to more private care. This new study debunks many of their assumptions about the effectiveness of private healthcare.

Of course, in the United States, the study is bound to fuel the debate surrounding single-payer healthcare. The issue has become a central one in the Democratic primaries, where contenders are offering competing visions for a more accessible healthcare plan.

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