US government spends the largest sum of money in health care activities. Yet there are various administrative problems existing in the country. There are various reasons for the existence of these problems.

There are a large number of health insurances companies in US. This makes the system administration tough in US. Insurers are spending a lot on the administrative activities like medical management and help lines for nurses. They have to spend a lot for entering into negotiations with US health care providers. Customer service and information technology contributed to another major share in the administrative costs of health care.