Private insurers pay steep markups for hospital drugs
Hospitals are charging private health insurers "considerable markups" on highly used outpatient drugs like Remicade, Neulasta and Keytruda, according to a new study in JAMA Internal Medicine.
Why it matters: Depending on the drug, insurers are paying hospitals several times what Medicare pays, and that ultimately flows through to workers' insurance premiums.
By the numbers: The largest variation came from Remicade, an IV drug that treats a range of autoimmune conditions, according to the study's sample of 20 major hospitals.
- The median rate paid by commercial insurers at Mayo Clinic's hospital in Phoenix was more than 800% of what Medicare would've paid.