Primer for Controlling Health Care Costs

Experts have long noted that the primary reason for out of control medical costs and rising insurance premiums is unnecessary medical treatment. The estimates calculating the waste in health care vary between 30 percent to 40 percent. In my own experience as a managed care executive, the actual number is closer to 40 percent.

Rationally, we all understand that the medical community largely controls these costs and owns 100% of the unnecessary treatment. While insurers will try to limit care, they are not seen as trying to increase it. If we accept that the medical community owns this problem, then reasonably we should seek the answer there.

All medical care is prescribed by doctors. If we want to control health care costs, we have to start there.