By NextBestFitPublic program administration
Running UHP: claims processing, enrollment, appeals, program integrity, rate-setting, regional offices.
Result
$107.5B
$66.1B → $107.5B
Per resident, per year
$315
÷ 341.1M people
Per household
$813
÷ 132.2M households
Range
$75.0B–$165.7B
Admin rate 1.8% (lean) to 3.5% (costly).
How it's calculated
| # | Step | Arithmetic | Value |
|---|---|---|---|
| 1 | 2024 government administration (CMS) Sources: CMS Office of the Actuary (2025) | $66.1B | |
| 2 | Medicare administration (replaced) | $15.0B | |
| 3 | Medicaid administration (replaced) | $40.1B | |
| 4 | Other programs' administration (continues: VA, DoD, CHIP, others) | $11.0B | |
| 5 | UHP benefit spending (all services) | $3.86T | |
| 6 | UHP administration at 2.5% of benefits | $3,860.4B × 2.5% | $96.5B |
| 7 | Total public administration under the plan | $96.5B + $11.0B | $107.5B |
| 8 | Compare: traditional Medicare's administrative share | 1.4% |
Inputs used
| Input | Kind | Value |
|---|---|---|
| UHP administration as a share of benefits | policy, high confidence | 2.5% |
| Traditional Medicare administrative cost share | data, high confidence | 1.4% |
Trade-off: A higher admin budget than Medicare's buys fraud control and service quality; a lower one saves money but risks Medicare-style improper payments (7.7%).