Waste, We Know You Are Out There

Henry Aaron argues that to cut waste in health care, the first step should be heavy investment in research on what works and what doesn't, and at what cost. The second step would be to extend insurance coverage to the uninsured. Both presidential candidates have put forward proposals for curtailing waste in the U.S. health care system. Behind these claims are estimates that various medical procedures are used inappropriately as much as one third of the time in the United States. The director of the Congressional Budget Office, Peter Orszag, stated in August 2008 that “a variety of credible evidence suggests that health care contains the largest inefficiencies in our economy. As much as $700 billion a year in health care services are delivered in the United States that do not improve health outcomes.” 1 Reports abound of needless or low-benefit procedures, . . .