30 Cents of Every Dollar Wasted in Healthcare

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.