Although in the U.S. ,significantly more of the GDP is spent on health care compared with Canada,approximately 25 percent of the U.S.health care spending goes toward high administrative costs associated with

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The high administrative costs in the U.S. healthcare system are largely due to the involvement of private health care companies. These companies have a higher administrative burden than public health care systems, as they must manage marketing, billing, and profit margins. This results in a higher percentage of the U.S. health care spending going toward administrative costs than in Canada.