by Michael N. Brown
Summary: When Donald Trump won the presidency on November 5, 2024, we expected extreme policy and regulatory changes. What we didn’t anticipate was the immediacy of his administration’s actions.
Alongside the world’s richest man and newly appointed head of the Office of Government Efficiency, Elon Musk, Trump has taken a hammer to wasteful federal spending. Their first major target? The U.S. Agency for International Development, where thousands of workers have been placed on administrative leave and all funding has been frozen. But what about the biggest money pit of them all—our U.S. healthcare system?
The United States spends more on healthcare than any other nation, yet ranks dead last in outcomes among high-income countries. According to a study by the Commonwealth Fund, we allocate 16.5% of our GDP—roughly $4.514 trillion—to healthcare. However, approximately 30% of that spending, or at least $1.126 trillion, is wasted.
Where Is This Money Going?
A closer look at the numbers makes things clearer:
- $101.2 billion is wasted on overtreatment or low-value care.
- 7.6% of total U.S. healthcare spending goes toward administrative costs.
- $83.9 billion is lost due to fraud and abuse.
- $240.5 billion is wasted due to pricing failures.
- $38.2 billion is lost due to failures in care coordination.
If targeted interventions were applied in these areas, we could save $286 billion almost immediately.
Part of the problem is that healthcare providers and insurance carriers are at odds, each prioritizing their own bottom line. Meanwhile, the people affected the most—the American public—face skyrocketing premiums, surprise medical bills, and endless battles over insurance denials.
The Bureaucratic Nightmare
Consider the absurdity of the system:
A 65-year-old patient suffering from bone-on-bone osteoarthritis is in excruciating pain and can barely walk. His surgeon determines that the patient is ineligible for the 12 weeks of physical therapy his insurance requires before approving surgery. Despite this, the insurer’s automated system denies the procedure as “not medically necessary” because the physical therapy requirement wasn’t met. Now, the surgeon is forced to appeal the decision, adding to the administrative burden and delaying payment.
Every year, nearly 5 billion medical claims are reviewed. 850 million are denied. Most patients—already stressed and vulnerable—don’t fight back. Those who do must navigate an exhausting maze of research, paperwork, and endless phone calls.
And the rage is starting to boil over.
The Breaking Point
When the CEO of UnitedHealthcare was shot in broad daylight last year, the immediate reaction wasn’t just shock—it was fury. Millions of Americans took to social media, voicing their outrage at an industry that prioritizes profit over human lives. Is this what our healthcare system has come to?
One of the biggest barriers to reform is the status quo mentality—the belief that healthcare must remain this way simply because it always has. But other industries prove otherwise.
Elon Musk didn’t revolutionize space travel by following NASA’s outdated playbook. Instead of throwing away billion-dollar rockets after each launch, he built reusable ones, dramatically cutting costs. He questioned inefficiencies that had been accepted for decades.
Now, with his no-nonsense style, Musk is shaking the very foundation of federal agencies—backed by Trump—through the Department of Government Efficiency (DOGE), pushing them to operate more like startups than bureaucracies.
A Healthcare System in Crisis
Why can’t we apply this mindset to healthcare? Why are we tolerating a system where waste isn’t just a byproduct, but a business model? If even a fraction of that $1.126 trillion in wasted spending were redirected, it could drive meaningful reform.
The Trump administration has attempted to cut Medicaid to lower drug costs. Whether this is the right or wrong approach remains to be seen, but the battle must continue. In 2024, the federal government’s spending exceeded its revenue by $1.83 trillion. Resolving just a portion of healthcare’s wasted spending—combined with DOGE’s other efficiency initiatives—could not only reduce the deficit but perhaps even run a surplus, making America both wealthier and healthier.
But even if we started a national conversation, we’d likely argue about the wrong things. What we need is a system that allows greater efficiency, transparency, and cost reduction while eliminating administrative burdens and improving outcomes.
America doesn’t need another band-aid solution. We need a complete restructuring of how healthcare dollars are spent. Perhaps a fresh set of eyes—someone outside the system—can ask the tough questions and push for real efficiency.
Just like Elon did with space travel.
The real question is: Do we have the courage to demand it?
