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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.

Independent Women’s Forum’s mission is to improve the lives of Americans by increasing the number of women who value free markets and personal liberty. Sister organization of Independent Women’s Voice.
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