UnitedHealth announces efficiency plan

Minnetonka-based UnitedHealth Group, one of the nation's biggest health insurers, is proposing a plan to substantially cut health care administration costs over the next decade.

UnitedHealth Group says the health care system is plagued by antiquated manual procedures, unnecessary paperwork and redundant processes. The insurer says using better technology for those tasks could save about $330 billion over the next decade.

Simon Stevens, director of the UnitedHealth Group's Center for Health Reform and Modernization, said there is a lot of work to be done.

"There's just too much administrative waste and red tape right across health care," he said. "It's really confusing for patients, lots of unnecessary forms to fill in and things to look at in the mail. And it's also a huge waste of time for doctors and hospitals, as well as for health plans."

Stevens said the government likely needs to require the industry to adopt initiatives, such as electronic billing and payments.