Seems everybody has a horror story about health insurance: Kafkaesque debates with robotic agents about what is and isn’t covered. Huge bills from a doctor you didn’t know was “out of network.” Reimbursements that take months to process.

It’s no secret that healthcare in the United States is tangled in wasteful red tape. A study in 2019 estimated that administrative complexity was the single biggest source of waste in health care—bigger even than fraud or over-pricing—and imposes an annual cost of $265 billion.

Administrative complexity is the biggest single source of waste in the healthcare industry. (Image: iStock/Chinnapong.)

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