Supplier Induced Demand??

Report on health care from the President's Council of Economic Advisers.

These  large  differences  in  spending  suggest  that  nearly  30  percent  of  Medicare’s  costs could be saved without adverse health consequences. 34   If these patterns are consistent with the experience  of  other  populations,  such  as  Medicaid  enrollees  and  the  privately  insured,  then  it should  be  possible  to  cut  total  health  expenditures  by  about  30  percent  without  worsening outcomes.  Since we currently spend approximately 18 percent of our GDP on health care, a 30 percent reduction in expenditures would again suggest that savings on the order of 5 percent of GDP could be feasible.