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Is Overutilization of Health Care Driving Up Costs?

December 2, 2009 | By: Robert | Comments ( 0 ) | Posted in: Health

When we hear discussion about the problems facing the U.S. health care system, we're often told that not enough people have access to affordable health care. And that's absolutely true--over 46 million Americans were without health insurance in 2006, a number that is almost certainly higher today.

 

But there's an important factor contributing to the health care crisis that isn't as widely discussed: too much health care.

 

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Overutilization of care is, by some experts, considered to be the foremost issue facing the U.S. health care system. Oncologist and White House adviser Dr. Ezekiel Emanuel believes that overutilization of health care services is perhaps the greatest contributor to soaring medical costs. And many others agree.

 

A few reasons for overutilization of care include:

  • A fee-for-service system that rewards volume over quality, leading to excessive surgical procedures

  • Medical professionals overprescribing drugs rather than providing alternative treatment options

  • Pharmaceutical companies marketing prescription drugs directly to consumers ("Ask your doctor about Lipitor...")

  • Excessive and unnecessary use of costly medical tests

  • Group insurance plans which shield consumers from the cost they incur

To reduce waste and improve efficiency, lawmakers have proposed a number of efforts to streamline the health care system. Among them are a system-wide standard of electronic medical records to boost coordination between medical providers; additional funding for research into the effectiveness of medical treatments; and incentives for hospitals and doctors to lower costs and provide better quality care.

 

Whatever the strategy, unless wasteful spending is cut significantly, the U.S. health care system will continue to see costs soar, especially if President Obama plans to extend coverage to the tens of millions of Americans who are currently uninsured.

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