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\section{Introduction}  Despite the standard of healthcare being roughly equivalent to other highly economically developed countries (as indicated by life expectancy statistics), consumer spending per capita on healthcare in the United States is almost double that of the other top ten economically developed nations in the world. This therefore would indicate that the structure of the market is to blame; the United States is the only member of these countries to have an almost entirely funded healthcare system.   \\This structure would naturally lead to an oligopoly of health insurance providers. providers (due to reasons that will be analysed later).  However, other reasons also accountable for this high expenditure, namely inefficiencies in the healthcare market. This may be because of firms wishing to maximise profit at the expense of absolute inefficiency, among other theories. The underlying evidence of high expenditure on healthcare is undeniably empirical, but the research question allows an investigation to ascertain if this seemingly unnecessary expenditure is due to only one factor, or if it is due to a variety of factors. It \\It  must also be noted that a high proportion of income in the United States is dedicated to healthcare, either through insurance premiums or direct payment to hospitals. This makes the conclusion of this essay relevant to hundreds of millions of people, as the cause of the inefficiency in the market may be able to be rectified. Methods of determining the primary cause of inefficiency are suitable to be subjected to economic analysis through use of primary and secondary data. This will be done by determining if there is indeed an oligopoly of insurance providers, determining average costs and marginal revenues to ascertain if abnormal profits are being made, among other analyses. Other areas to be considered are administrative inefficiency, consumer choice, allocative inefficiency, and productive inefficiency.