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Michigan Post > Blog > Michigan > Michigan hospitals, activists disagree on price-gouging claims
Michigan

Michigan hospitals, activists disagree on price-gouging claims

By Editorial Board Published May 21, 2025 3 Min Read
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Michigan hospitals, activists disagree on price-gouging claims

​LANSING, (Mich.) WLNS — Searching for the appropriate hospital might prevent cash, in response to the Michigan Well being Purchasers Coalition (MIHPC). The group claims hospitals are ripping off sufferers in relation to drug prices, however hospitals deny this.

Bret Jackson, the president of MIHPC, says extreme prices are conserving folks from getting the care they want.

“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,” mentioned Jackson.”It really is the difference between living a healthy life or suffering.”

In line with knowledge offered by MIHPC, hospitals spent simply greater than $4 billion on medicine in 2023, however sufferers paid greater than $13 billion for those self same medicine.

Jackson mentioned hospitals do not need to cost as a lot 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 sufferers pay what’s referred to as a co-insurance, often round 20% of the entire value of care. For sufferers with Medicare, drug costs are sometimes a lot decrease. One instance from the MIHPC was Humira, a drug used to deal with rheumatoid arthritis.

With Medicare, the drug prices about $1,800. With out Medicare, Humira can value round $13,000 for the very same drug.

Laura Appel, the Vice President of the Michigan Well being and Hospital Affiliation, 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,” mentioned Appel.

Appel mentioned the coalition failed to acknowledge a number of essential value components concerned with these medicine.

“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,” mentioned Appel. “Hospitals do everything that they can to keep costs down and still serve their communities.”

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