EY America's chief medical officer Dr. Yele Aluko joined Yahoo Finance to discuss how to achieve health equity and the need to curb rising health care costs.
"There's an excessive amount of health care spend by employers on health care utilization," Aluko said.
U.S. employers account for one-fifth of the more than $3.5 trillion spent on health care, and are the largest source of private insurance coverage in the country.
There is a large amount of waste within the industry, and a lot of inefficiency borne by employers managing health care of their employees, which is why all stakeholders have to come together to solve the problem, he said.
For example, employers pay hefty sums for chronic care conditions like heart diseases and cancer, which are skewed disproportionately to minorities, Aluko said. Employers buying into the idea of health equity can utilize that knowledge and the data to demand better coverage and lower costs.
"Advocating for health equity will result in significant unlocking of capital for the business," Aluko said.
"Until we begin to focus on value, and elimination of care variation among demographics," Aluko said, we can expect rising costs of care to continue.
"It is incumbent on health care organizations to be held accountable for cost containment." Aluko said.
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