How Health Care System Wastes Up to $850 Billion Annually in US?

According to a report , the American health care system wastes unnecessarily between $505 billion and $850 billion each and every year, which is up to a third of the nation's total health care costs. "America's health care system is really hemorrhaging billions of dollars, and the chances to slow the financial flow are substantial," said the report, which was completed by Thomson Reuters' vice president for health care analytics.

The report highlights numerous key areas where the U.S. systems shine at inefficiency:

• Unnecessary care, such as the overdo of antibiotics and lab tests, to protect against negligence exposure makes up 37 percent of health care waste.

• Swindle makes up 22 percent of the shattered expenditures, or up to $200 billion a year in fake Medicare claims, kickbacks for appointment for unnecessary services and other scams.

• Administrative inefficiency and surplus paperwork account for 18 percent of waste.

• Medical mistakes account for $50 billion to $100 billion in unnecessary expenses each year, or 11 percent of the total.

• Preventable conditions such as abandoned diabetes cost $30 billion to $50 billion a year.