Study: Significant Drug Price Differences in Women’s Health Medications When Prescribed at Hospitals

CONTACT: Lucy Goldstein, 586.488.8609, lgoldstein@mrgmi.com

Women in Michigan can experience a variance of up to $30,000 for the same medication, depending on which hospital the medication is prescribed, according to two research reports released by the Michigan Health Purchasers Coalition (MIHPC). The reports highlight pricing variances and discrepancies when it comes to women’s health medications, specifically denosumab and ocrelizumab. 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 underscore the wide gap in hospital pricing across the state,” said Bret Jackson, President of MIHPC. “Referencing the ASP as a benchmark reveals the extent to which hospitals are inflating prices for everyday drugs, further demonstrating the need for urgent action on improved transparency and accountability throughout hospitals across Michigan.”

MIHPC’s aim is to highlight these pricing disparities and increase awareness about the importance of drug pricing transparency in healthcare. The following information has been pulled from their two most recent studies:

1. Denosumab Injection 

2. Ocrelizumab Injection

“Women make up the majority of patients living with conditions like osteoporosis and multiple sclerosis, causing them to be subject to these exorbitant prices for medications. A single injection varying in cost by over $30,000 per dose clearly shows hospital pricing has spiraled beyond reason. Women shouldn’t have to be burdened with debt or fear not being able to receive medical care due to egregious hospital pricing. We need to protect women's health which means calling on hospitals to be transparent and be held accountable. The time for reform is now,” said Jackson.

“Not all hospitals and health systems take part in price transparency initiatives, as shown by the absence of certain hospitals and health systems in these reports,” said Jackson. “This lack of transparency creates challenges for employers who are trying to determine the best value and highest quality care for their employees. We need transparency across the board on all procedures. The drastic difference in pricing from hospital to hospital should cause individuals to take notice and begin to shop for their healthcare. There are ways to save, you just have to treat it like you would any big purchase.”

Michigan Health Purchasers Coalition (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. ​​MIHPC’s initiatives include increasing hospital price transparency, prohibiting anti-competitive contracts and billing, increasing oversight on consolidations and mergers, and incorporating fair pricing among all payers of healthcare. For more information, please visit mihpc.org. 

¹ _{https://www.bonehealthandosteoporosis.org/preventing-fractures/general-facts/what-women-need-to-know/}

² _{Hittle M, Culpepper WJ, Langer-Gould A, et al. Population-Based Estimates for the Prevalence of Multiple Sclerosis in the United States by Race, Ethnicity, Age, Sex, and Geographic Region. JAMA Neurol. 2023;80(7):693–701. doi:10.1001/jamaneurol.2023.1135}