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Analysis: 25% of US health care spending is wasteful

Roughly 25% of US health care spending is estimated to be wasteful at a cost of $760 billion to $935 billion per year, according to a study in the Journal of the American Medical Association. The findings, based on an analysis of 54 peer-reviewed publications, government reports and other articles from 2012 to 2019, showed waste due to administrative complexity accounted for the highest share of spending at $265.6 billion per year, followed by waste due to pricing failure, failure of care delivery, overtreatment or low-value care, fraud and abuse, and failure of care coordination.

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