21-05-2025
Michigan hospitals, activists disagree on price-gouging claims
LANSING, (Mich.) WLNS — Shopping for the right hospital could save you money, according to the Michigan Health Purchasers Coalition (MIHPC). The group claims hospitals are ripping off patients when it comes to drug costs, but hospitals deny this.
Bret Jackson, the president of MIHPC, says excessive costs are keeping people from getting the care they need.
'People not taking the drug that they need to be healthy because of the cost of what they have to pay out of their pocket,' said Jackson.'It really is the difference between living a healthy life or suffering.'
According to data provided by MIHPC, hospitals spent just more than $4 billion on drugs in 2023, but patients paid more than $13 billion for those same drugs.
Jackson said hospitals don't have to charge as much as they do.
'Some hospitals are overcharging patients for drugs. I don't think they need to, I think they are getting reasonable rates for drugs that they are dispensing to patients, and I think they need to do right by the parents that they serve…'
Many patients pay what's called a co-insurance, usually around 20% of the total cost of care. For patients with Medicare, drug prices are often much lower. One example from the MIHPC was Humira, a drug used to treat rheumatoid arthritis.
With Medicare, the drug costs about $1,800. Without Medicare, Humira can cost around $13,000 for the exact same drug.
Laura Appel, the Vice President of the Michigan Health and Hospital Association, rejects the claims of over-pricing.
'We reject the claim of price gouging. The coalition chose a few items to analyze. We think that their dataset is incomplete,' said Appel.
Appel said the coalition failed to recognize multiple important cost factors involved with these drugs.
'Just the cost of the drug, that is not the cost of receiving the drug in the hospital, and keeping it at the right place at the right temperature, and paying pharmacists and pharmacy taxes, and making sure that the drug is not expired,' said Appel. 'Hospitals do everything that they can to keep costs down and still serve their communities.'
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