The public interest group CALPIRG says California spends nine-billion dollars a year on health insurance-related administrative costs. The group says much of this spending is wasteful. KPBS Reporter Kenny Goldberg has more.
CALPIRG concedes some administrative spending is needed to deliver health care. But it says a lot of expenses are tied up in complex billing systems and other services that add nothing to the quality of care.
CALPIRG's Pedro Morillas says the systems involved in the delivery of healthcare are inefficient
Pedro Morillas: "A lot of insurers and a lot of healthcare providers have duplicative processes and just end up wasting money on the process in general."
A new CALPIRG report says excess hospitalization and drug company advertising also contribute to the high cost of care.
The report says California must take steps to reign in all of the overspending in healthcare.
Kenny Goldberg, KPBS News.
