Insurer points to $332B in possible health savings

Managed-care company UnitedHealth Group Inc. suggests $332 billion can be trimmed from the U.S. health system over the next decade by cutting paperwork hassles and boosting administrative technology.

The savings would be spread among hospitals, doctors, insurers and the government, the Minnetonka, Minn.-based insurer said Tuesday, as it unveiled 12 cost-cutting options during a Washington, D.C., briefing.

As Congress and the Obama administration work through a high-stakes health care overhaul, UnitedHealth has chipped into the debate with reports detailing ways to save billions. Last month, the insurer said the government can save more than $500 billion in Medicare spending over 10 years.

Like many voices with an interest in the health care overhaul, UnitedHealth is also trying to position itself as a constructive force in the debate and the war on health costs _ any lowering of which would likely help its bottom line.

UnitedHealth said Tuesday its latest report was an addition to its previous suggestions.

"Doctors, hospitals, health plans all waste time and money dealing with administrative processes that are overly paper based, duplicative or redundant," said Simon Stevens, a UnitedHealth executive vice president, during a briefing telecast from UnitedHealth's Washington, D.C., office.

The insurer noted that $14 billion can be saved simply by eliminating "explanation of benefits" forms and replacing them with an electronic statement. Paper versions of the forms _ which are commonly labeled with the phrase "This is not a bill" _ cost 28 cents per claim. Electronic versions would cost a penny.

Broader use of automatic swipe cards to check patient eligibility and benefits could save $18 billion, the insurer said. Eliminating paper checks to providers in favor of electronic funds transfers could net $109 billion in savings.

Doctors and hospitals would receive about half the savings, health insurers would get about 30 percent and the government would reap about 20 percent.

UnitedHealth said costs for upgrading technology are included in its savings estimates, but some options come with roadblocks. For example, some states require that patients receive explanation of benefit forms.

The insurer said it gleaned the cost-saving options, in part, from experience. UnitedHealth is the largest commercial health insurer based on revenue and the second-largest _ behind Indianapolis-based WellPoint Inc. _ ranked by membership.