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Two Reasons Why Health Care Costs So Much

The holder of an MBA from Kellogg School of Management, Amir Pirnia is a hands-on manager with over 15 years’ experience in software architecture and information technology. The vice president of engineering at Hixme, Amir Pirnia develops technology strategies to improve the effectiveness and affordability of health care insurance for Americans. 

The United States spends an estimated $3.4 trillion on health care every year. That’s just lower than the GDP of the fourth-largest economy on earth. Why is America’s health care so expensive? Two things may contribute to the problem: health care waste and doctors who do not know the cost of medical procedures. 

It is estimated that up to a third of America’s health care budget is wasted on unnecessary treatments and low-medical-value procedures in addition to under-use of preventive practices. Controlling spending on unnecessary procedures and preventing major illnesses before they occur will reduce health care costs. 

Another solution is educa…