Paperwork is driving up health care costs by as much as $9 billion annually in California, according to a public interest group that suggests physicians and insurers spend way too much time on processing insurance claims.

In California, physicians typically spend about 45 minutes a day on insurance paperwork, according to a report released Thursday by the California Public Interest Research Group.

"If we can do it more cheaply, it's a win-win for everybody," said Michael Russo, a health care advocate and staff attorney with CalPIRG. "When costs are skyrocketing, it's best to go for the low-hanging fruit. This is an area where we spend a lot of money."

In all, CalPIRG estimates that $9 billion is spent by insurers and medical practices in California to process insurance claims.

"It's just ridiculous," said Dr. David Kosh, a family physician in Sacramento. He said his billing staff spends most of its day on the phone with insurers.

"If I had to do it, I would never be able to see my patients," Kosh said.

CalPIRG suggests creating a nonprofit health information network similar to those in Utah and New England, which use standardized procedures to reduce time-consuming paperwork.

A study published in May by the journal Health Affairs tallied the national cost of the system: between $23 billion and $31 billion a year. The typical physician spends the equivalent of three weeks a year handling insurance claims.

Legislative efforts to streamline the administrative process for filing insurance claims in California have stalled. Some federal lawmakers are pushing for national standards as part of the proposed overhaul of the country's health care system.

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Call The Bee's Bobby Caina Calvan, (916) 321-1067.

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