HospitalWatch just released a report showing how hospitals in the US are charging people with employer coverage many times more than Medicare for the same services. Hospitals’ profit margins are reportedly 145 percent above their commercial breakeven cost. These excessive charges are driving up health insurance premiums and people’s out-of-pocket costs.
The report shows that hospitals are charging Americans with employer coverage 269 percent more than Medicare. In several states, hospitals are charging Americans more than three times Medicare rates. The top five states with the greatest overcharges are Florida, West Virginia, Georgia, New York and South Carolina. They charge rates between 329 percent and 380 percent of Medicare’s rates.
Arizona, Massachusetts, and Mississippi are the only three states with average hospital charges that are less than twice Medicare’s rates. Arizona hospitals charge, on average, 166 percent of Medicare’s rates. And, Mississippi and Massachusetts hospitals charge, on average, 193 percent and 196 percent of Medicare’s rates, respectively.
Hospitals are responsible for about 40 percent of all health care spending. And, their prices keep going up, faster than inflation.
Here’s more from Just Care:
- Avoid private equity-owned hospitals
- More hospitals are dropping Medicare Advantage
- What’s happening to our hospitals?
- Doctors and hospitals face increasing claims denials
- Some hospitals gouge Americans because they can
