An analysis by Hospital Watch finds Hospitals across the U.S. are charging patients with employer-provided health insurance an average of 269% more than Medicare for the same care with Florida being one of the worst offenders.
Hospital Watch says nationwide, hospital price gouging crisis are 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.
The findings are based on pricing data from SAGE Transparency, RAND Corporation, the National Academy for State Health Policy (NASHP), and federal CMS data.
“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.
One medical analyst told Florida Daily that while he agrees with the over all view Hospital Watch takes with having more transparency, the group is know to attack the Trump administration and Republicans looking to curb the cost with Obamacare.
