[andrewlgood]

I disagree with the assertion "administrative cost to the consumer is profit for the company." Anyone who has looked at customer support expense from a company's perspective knows it is a burden that the company would gladly do away with.

What was not discussed in the paper was the effect the administrative complexities have on creating a moat are health care plans. The greater the complexity, the less healthcare providers will want to associate with multiple healthcare organizations/insurance companies.