Recommendations to the Senate HELP Committee

Reducing Administrative Costs in Healthcare

March 2019

CAQH recently submitted a letter to the Senate Committee on Health, Education, Labor and Pensions (“HELP Committee”) with recommendations to reduce administrative costs in healthcare. In response to a request to stakeholders from HELP Committee Chair Lamar Alexander, CAQH recommended that Congress: (i) establish a goal to reduce unnecessary costs and administrative burdens across the health care system; (ii) rationalize state and federal regulatory requirements regarding provider data; (iii) accelerate adoption of administrative standards and operating rules; and (iv) urge HHS to immediately release federal rules on health care attachments for the exchange of clinical information.

The HELP Committee has held a series of hearings about healthcare cost drivers and Chairman Alexander has indicated his intention to advance healthcare cost control legislation in this Congress. CAQH will continue to monitor deliberations of the HELP Committee and welcomes the opportunity to serve as a resource on how to reduce administrative costs in healthcare. Research estimates that 10 percent of national health expenditures are due to administrative complexity that could be eliminated without harming consumers or care quality.

Findings from the 2018 CAQH Index, the sixth produced annually, suggest that positive change is occurring through the adoption of electronic business processes, but continued efforts are needed. More industry work can significantly reduce the volume of expensive, time-consuming manual transactions while adjusting to changing administrative needs for value-based care. CAQH estimates that the combined medical and dental industries could save an additional $12.4 billion annually with full adoption of electronic administrative transactions measured in the 2018 Index. Learn more at www.caqhindex.org.

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