Causes of high health care costs

[Sarah]

Health care costs in the United States are disproportionately high for many reasons. (See also Overview of Health Care Financing.)

Many factors, particularly the use of expensive new diagnostic tests and treatments, contribute to the high cost of health care.
Use of these new tests and treatments does not necessarily result in better health.
In the United States, administrative costs, mostly related to private insurance, account for 20 to more than 30% of health care costs.
Reducing doctor fees is not likely to reduce health care costs very much.
Aging of the U.S. population probably has not contributed greatly to the increases in health care costs but may do so as baby boomers age.