A major contributor to health care expenditures in the U.S.is the administrative cost of the insurance process itself.

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Several studies have shown that administrative costs account for a significant percentage of total health care expenditures in the U.S. For example, a study published in the Annals of Internal Medicine found that administrative costs consumed 34.2% of total expenditures in the U.S. health care system, compared to only 17.8% in Canada's single-payer system. These administrative costs include expenses related to billing and coding, claim adjudication, marketing, underwriting, and other activities associated with the insurance process.

A Major Contributor to Health Care Expenditures in the U