UnitedHealth Proposes $332 Billion In Lower Health Administration Costs

WASHINGTON -(Dow Jones)- One of the nation's largest health insurers issued a report Tuesday suggesting the U.S. health sector could reduce costs by $332 billion through reduced paperwork and administrative costs.

UnitedHealth Group Inc. (UNH), a Minneapolis managed care company, released a similar study in late May outlining ways the federal government could shed $540 billion in future medical costs over 10 years. The company is seeking to demonstrate how insurers and the federal government can rein in spiraling medical costs through practical means.

The report released Tuesday includes a number of proposed ways to lower administrative costs, including a new electronic system by which physicians can submit claims to insurance companies. The new system could save $108.6 billion over ten years, according to the report.

Another proposed option would scrap "explanations of benefits," which are sent to patients after doctors' visits, in favor of health statements available online each month.

As a whole, the health insurance industry - led by the America's Health Insurance Plans trade group - has ramped up efforts to improve practices among its own ranks. The industry is attempting to fend off congressional proposals to create a government-run health insurance option to compete with private insurers, however.

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