September 23 2012
30 Cents of Every Dollar Wasted in Healthcare
Vicki E. Alger
A recent report from the Institute of Medicine finds that the health care system wastes $750 billion a year, about 30 cents of every dollar. Here are the top inefficiencies:
$210 billion goes toward unnecessary services
$130 billion goes toward inefficient delivery of care.
$190 billion goes toward excessive administrative costs.
$105 billion goes toward inflated prices.
Prevention failures make up $55 billion.
And finally, fraud accounts for $75 billion.
To put this in perspective, eliminating the $750 billion in inefficiencies is equivalent to more than 10 years of Medicare cuts in Obama's health care law.
Maybe it’s time to eliminate the middle-man and let individuals pick the insurance that’s right for them, without having to go through their employers, and expand health savings accounts (HSAs) without government meddling.