The ridiculously high costs of complexity and bureaucracy, not overpriced pharmaceuticals and not expensive hospital stays, are the main drivers behind the excessive cost of healthcare in America. Although it may sound counterintuitive at first, rationally simplifying and minimizing the choice in basic health insurance is the key to fixing this problem without resorting to socialized medicine or wiping out the U.S. insurance industry.

America spends much more on healthcare than other high-income countries, even though our health outcomes at times appear to lag behind. That’s because as much as one-third of the $3.5 trillion we spend on healthcare each year does nothing to keep people healthy or make patients feel better. It is wasted on nonmedical administrative, marketing, and other peripheral activities such as pharmacy benefit managers. This is the result of a poorly structured healthcare system that isn’t really a “system” at all. And the complexity and lack of transparency provide a fertile breeding ground for fraud and overutilization.