Statistics show industry’s growth

How important is health care to the U.S. economy? The Rand Corp., a non-partisan think tank, has some startling stats showing medical billers will be even busier in coming years.

Health care spending is growing faster than the overall economy. Americans spent $2.1 trillion in 2006 and $2.25 trillion in 2007 with an expected annual growth rate of 6.7 percent. By 2017, nearly one-fifth of all spending will be on health care.

Sounds like a growth industry for medical billers.

The federal government paid for one-third of healthcare spending, largely through Medicaid and Medicare. Private companies paid 34 percent while individuals paid 14 percent. The remaining 20 percent was paid by state and local funds.

More than half of Americans have health insurance supplied by employers, but one in six have none. The average American spends six percent of their after-tax income on health care.

The U.S. spends more than other countries using single-payer systems. The U.S. spends 7 percent compared to 1.9 percent by France.

Private insurance companies spend 14 percent on administrative costs compared to 3 to 5 percent for public insurance programs.