Information below from Hospital Watch, a watchdog group for corporate hospitals and U.S. healthcare costs.
New Report: Hospitals Charging Americans Up To 4x Medicare Rates As “Price Gouging” Crisis Hits All 50 States
Hospitals across the United States are charging patients with employer-provided health insurance an average of 269% more than Medicare for the same care, according to a new national analysis released today by Hospital Watch – fueling what the watchdog says is a nationwide hospital price gouging crisis driving up premiums and medical bills for millions of Americans.
The report finds that hospitals are also charging 145% more than their commercial breakeven costs, allowing many hospital systems to generate massive profits while patients and employers absorb the rising costs.
“Hospitals account for roughly 40 cents of every healthcare dollar spent. Not only that, their prices are rising faster than inflation, wages, and nearly every other part of the healthcare system,” said Adam Buckalew, senior advisor to Hospital Watch. “When hospital prices go up, premiums go up. When premiums go up, employers shift more costs to workers. Deductibles rise. Out-of-pocket costs rise. There’s no mystery here.”
States with the Worst Hospital Overcharging
The report ranks states by how much hospitals charge above Medicare rates and above their commercial breakeven cost. States with the most extreme hospital overcharging include:
- Florida: hospitals charging 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
According to the analysis, excessive hospital pricing is driving higher insurance premiums for employers and workers while increasing deductibles and out-of-pocket costs for patients nationwide.
“This isn’t about hardworking doctors and nurses that take care of patients when they need it most. It’s about greedy hospital executives and large, corporate hospital systems that dominate local markets, raise prices by an average of three times the cost of care, and stick patients with costly and confusing bills,” Buckalew said.
The findings are based on pricing data from SAGE Transparency, RAND Corporation, the National Academy for State Health Policy (NASHP), and federal CMS data.
Hospital Price Gouging Exists Nationwide
Hospital Watch says the report shows that excessive hospital pricing is not isolated to a few states or health systems.
“The bottom line is that there is hospital price gouging in all 50 states,” said Buckalew. “No matter where you live, hospital systems are using their market power to charge patients far more than the cost of care.”
Fixing the Hospital Pricing Problem
Hospital Watch says policymakers should address the issue by strengthening price transparency rules and cracking down on hospital consolidation that reduces competition.
“It’s time to confront the role hospitals play in our nation’s healthcare affordability crisis. Patients across the country should be able to rely on hospitals to care for them when they are most in need,” Buckalew said. “Real price transparency, stronger antitrust enforcement, and policies that restore competition are critical if we want to bring healthcare costs back down.”
Hospital spending accounts for the largest share of healthcare costs in the United States, and watchdogs say addressing hospital pricing practices could significantly lower healthcare spending for American families and employers.
