A new study has revealed a staggering $4.4 billion in Medicare spending on medical services that provide little to no benefit to seniors, and sometimes even cause harm. Researchers from the University of Chicago and the University of Michigan analyzed 47 procedures and screenings deemed “low-value,” finding that $3.6 billion comes directly from Medicare while seniors pay $800 million out-of-pocket.
These unnecessary services include routine head scans for headaches, spinal injections for back pain, and prostate cancer screenings in elderly men who don’t meet clinical criteria. Despite guidelines advising against them, such tests are performed millions of times a year. In fact, the study estimates that 2.6 million low-value services are delivered annually in a 5% sample of Medicare beneficiaries, suggesting tens of millions nationwide.
The most expensive culprits? Screening for COPD in symptom-free patients, testing urine for bacteria without symptoms, and feeding tubes for advanced dementia patients. Five of these services, including PSA testing and carotid artery screenings, are rated “grade D” by the U.S. Preventive Services Task Force, meaning they’re not recommended due to lack of benefit or risk of harm. Together, these five alone cost Medicare $2.6 billion annually.
The researchers warn the true cost is likely far higher. Unnecessary tests often trigger a “care cascade,” leading to follow-up scans, procedures, and emotional stress from false positives. In some cases, patients even suffer complications from invasive interventions.
Experts suggest cutting payments for these grade D services, tightening authorization rules, and updating electronic health record systems to reduce overuse. “Reducing low-value care is a win-win,” said co-author Dr. David Kim. “It saves billions while protecting patients from unnecessary risk.” The findings, published in JAMA Health Forum, spotlight a major opportunity to redirect funds to treatments that genuinely improve lives.
