“The term “health care” evokes different images in people’s minds. To patients who find a miraculous cure, health care may be almost sacred. For physicians, nurses and other health care professionals it is a compassionate human activity. To hard-nosed economists, health care represents just another exchange of favors embedded in a wider market economy that consists of exchanging favors.” In this article Uwe. E. Reinhardt tackles the misconception of why American health care cost so much. Reinhardt argues that American’s use of high cost, high tech procedures may only partially explain why American healthcare is among the highest in the world. After recognizing and placing blame on high cost high tech procedures Reinhardt describes much higher administrative overhead costs and significantly higher prices American’s pay for virtually all health care services as two equally important contributors to Americas extremely high health care spending. The United States spends roughly 40 percent more on health care per capita than its G.D.P. per capita would predict. Some people argue that Americas demographic would explain its much higher health spending, but that is incorrect. Only 13.3% of the USA’s population is age 65 and above, spending 8000 per person compared to Germany, Italy, and Japan with over 20% of this population over 65 spent less than half per person. American’s do buy something with this (extra) spending, and that’s an extremely large administrative overhead. With all this overhead one would think the united states would at least be among one the worlds top healthcare systems right? Well, contrary to the misconception that, ‘the American health system is the best in the world, bar none” the US Business Roundtable released a study,assisted by 12 distinguished health economists, reporting that, “relative to health spending levels in the rest of the OECD, the USA faces a 24% value gap relative to Canad