Top US cancer hospitals mark up drug prices: 4 findings

Cancer hospitals across the nation are marking up the price of cancer therapies for health insurers anywhere from double to nearly seven times the cost of acquiring them, a study published April 18 in JAMA Internal Medicine found.

Researchers performed a cross-sectional analysis of private payer–specific negotiated prices for therapies at National Cancer Institute-designated cancer centers from April 1 to Oct. 15, 2021. They also determined whether each center participated in the federal 340B drug-pricing program, which allows the purchase of discounted outpatient drugs, and the 25 parenteral cancer therapies by Medicare Part B spending in 2019. 

Price markups for each cancer therapy were calculated as the difference between payer-specific prices and estimated acquisition costs. 

Four findings: 

  • Of the 61 National Cancer Institute-designated cancer centers included in the study, 27 disclosed private payer-specific prices for at least one popular cancer therapy. 

  • Median drug price markups at all centers and payers ranged from 118.4 percent and 633.6 percent. 

  • Across-center price ratios, the ratio between the 90th percentile and 10th percentile median prices across centers, ranged between 2.2 and 15.8.

  • Median within-center price ratios, the ratio between the 90th percentile and 10th percentile prices between payers, ranged from 1.8 to 2.5.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars