The prices that hospitals charge patients and their insurance companies for cancer drugs are often at least double what the hospital paid to acquire the drugs, according to a new study in the prestigious medical journal JAMA: Internal Medicine. In some cases, the hospitals marked the drugs up as much as 7X what it cost them to stock it in the supply cabinet.
A separate study sponsored by AHIP, the health insurance trade association, found that:
These are prime examples of how America’s fee-for-service healthcare system drives up the cost of care. Doctors, hospitals and all other healthcare providers are incentivized to charge as much as they can get away with, because neither the patients nor their insurance companies have any bargaining power to drive down costs.