CONTACT: Lucy Goldstein, 586.488.8609, lgoldstein@mrgmi.com
LANSING, Mich. – The Michigan Health Purchasers Coalition (MIHPC) has released three research reports highlighting perceived disparities in pricing for drugs commonly prescribed to patients as injections or infusions in hospital settings. MIHPCs findings emphasize the great need for pricing transparency.
MIHPC has used the average sales price (ASP), the volume-weighted average of manufacturer sales prices for a drug across all purchasers, and the net of all price concessions (rebates, discounts, etc.) as the baseline for these findings. ASP is used as a guideline for how much health systems should pay for a specific medication.
“These reports highlight a huge disparity in hospital pricing across the state,” said Bret Jackson, President of MIHPC. “By using the ASP as a benchmark, we clearly display how much hospitals are price gouging Michiganders when it comes to common drugs and the need for urgent action on transparency and accountability from the hospitals.”
- Pegfilgrastim is a medication used to prevent infections in cancer patients. The cost for commercial payers in Michigan health systems can average between 2 and 6 times higher than the ASP.
- In the Flint area, prices range from $869 to $3,278 for a single dose. Henry Ford Genesys charges $3,278, more than 13 times the ASP.
- In Metro-Detroit, employers could save $165,750 for 150 employees by selecting lower cost hospitals for this treatment.
“The stark variation in pricing isn't explained by the quality of care or the outcome. Employers and employees are paying drastically different prices for the same drug in the same area,” said Bret Jackson, President of MIHPC.
- A medication used to treat inflammatory conditions and the number one drug by spend for many employers in 2022.
- In the Ann Arbor-Jackson area, the cost varies from U of M Ann Arbor charging $1,201 a dose to Henry Ford Jackson charging $15,808, a $14,607 price difference for the same medication in the same geographic area, and nearly 18 times more than the benchmark ASP.
- A medication used most commonly for rheumatoid and psoriatic arthritis.
- In the Grand Rapids area, the price difference per dose is $2,150 while in the Ann Arbor-Jackson area, the price difference is $3,511.
- The cost of Abatacept across Michigan Health Systems ranges from 1.2 to 1.5 times higher than the ASP.
“Employers and employees are being treated differently across the board in terms of hospital pricing. Both deserve access to affordable medications without paying inflated, unjustified prices,” said Jackson. “Patients should not have to shop around and choose a different hospital within the same region due to price differences.”
MIHPC is a 501(c)(4) statewide coalition dedicated to mobilizing employers, families, and healthcare stakeholders to address critical issues in Michigan's health care system and advocate for patients throughout Michigan. For more information, please visit mihpc.org
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