An analysis by Hospital Watch found that hospitals nationwide charge an average of 269% more than Medicare for the same treatment for patients with employer-sponsored health insurance, with Florida having one of the highest rates of violations.
Across the country, the hospital price gouging crisis is driving up insurance premiums and medical costs for millions of Americans, Hospital Watch said.
The report also found that hospitals are charging 145% more than commercial break-even costs, allowing many hospital systems to generate huge profits while patients and employers absorb higher costs.
“Hospitals account for about 40 cents of every dollar spent on health care,” said Adam Buckalew, senior advisor at Hospital Watch. “Not only that, but hospital prices are rising faster than inflation, faster than wages, and faster than almost every other part of the health care system.” “When hospital prices go up, insurance premiums go up. When premiums go up, employers pass more costs onto workers. Deductibles go up, and out-of-pocket costs go up. No wonder.”
States with worst hospital overcharging.
The report ranks states by how much hospitals charge above Medicare rates and commercial break-even rates. The states with the worst hospital overbilling are:
Florida: Hospitals charge 380% more than Medicare
West Virginia: 369% more than Medicare
South Carolina: 350% more than Medicare
Georgia: 346% more than Medicare
Indiana: 338% more than Medicare
New York: 329% more than Medicare.
California: 329% more than Medicare
Colorado: 314% more than Medicare
Idaho: 311% more than Medicare
Arizona: 307% more than Medicare
The analysis shows that hospital overpricing increases premiums for employers and workers, while increasing deductibles and out-of-pocket costs for patients nationwide.
The findings are based on SAGE Transparency, RAND Corporation, National Academy for State Health Policy (NASHP) pricing data, and federal CMS data.
“The bottom line is that hospital price gouging is happening in all 50 states,” Buckalew said. “No matter where you live, hospital systems use their market power to charge patients far more than the cost of treatment.”
Solving hospital pricing problems
Hospital Watch says policymakers should address the issue by strengthening price transparency rules.
One health care analyst told The Florida Daily that while he agrees with Hospital Watch’s overall view of increasing transparency, the group is known for attacking the Trump administration and Republicans who are trying to contain costs with Obamacare.
