4.5 Article

Low-Cost, High-Volume Health Services Contribute The Most To Unnecessary Health Spending

Journal

HEALTH AFFAIRS
Volume 36, Issue 10, Pages 1701-1704

Publisher

PROJECT HOPE
DOI: 10.1377/hlthaff.2017.0385

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Funding

  1. Centers for Medicare and Medicaid Services State Innovation Model Initiative (SIM) Grant [1G1CMS331384-01-00]

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An analysis of data for 2014 about forty-four low-value health services in the Virginia All Payer Claims Database revealed more than $586 million in unnecessary costs. Among these low-value services, those that were low and very low cost ($538 or less per service) were delivered far more frequently than services that were high and very high cost ($539 or more). The combined costs of the former group were nearly twice those of the latter (65 percent versus 35 percent).

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