Skip to main content

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 educating physicians and patients on the true cost of medical procedures. Often, doctors recommend procedures without knowing their costs. Because these costs are never really “advertised,” they only become evident after a patient is charged and the insurance company pays for them. Hiding these costs kills competitiveness, which is why fees for medical tests and procedures in the country are three or more times higher than in other developed countries. Nobody would pay $25 for a cup of coffee if they knew it cost $2 in the store across the road. Promoting awareness of medical costs will help health care patients make better decisions.

Popular posts from this blog

Hixme Secures Funding and Works to Expand Markets and Benefits Offered

Amir Pirnia serves as engineering vice president with Hixme Insurance Solutions, Inc., and guides the development of an analytics and data science-driven cloud platform that is eminently scalable and flexible. Amir Pirnia and his team help re-envision the way in which employee benefits are packaged and personalized within a competitive marketplace.

In November, 2016, Hixme secured $14.1 million in investment funds through a successful Series B round of venture financing. This money is being utilized in the design of new employee benefits bundles and in driving expansion efforts beyond the core market of California.

The latter effort builds on a WorkPlace Market platform that enables companies headquartered in California to offer employees based out of state ways to efficiently manage health plans. Regions targeted for new marketing campaigns include Atlanta, Dallas, and Houston.

Another aspect of Hixme’s expansion efforts involves the bundling of a wider range of benefits, including ret…