James Dichter, a 59-year-old consultant from Massachusetts, recently had elbow surgery and went home with a sling that cost his insurance company $83. His co-pay was $25, but he found a similar sling online for a mere $7 dollars. He filed complaints with government agencies, the supplier, his insurance company, even with Massachusetts Senator John Kerry’s office.
Company Defends Price
He also called Liz Kowalczyk of the Boston Globe.
She started looking into why Dichter’s insurer had paid SurgiCare, a Waltham, Massachusetts medical equipment supplier, so much for the sling, which is made of two thin cloth panels sewn together and a shoulder strap.
SurgiCare told the Boston Globe that their price was fair because the company provides services that an online retailer doesn’t.
A ‘Little Understood Corner’ Of Health Care
Kowalczyk writes that there are no simple answers for medical equipment costs, what she calls a “little-understood corner of the health care system.”
Prices for medical equipment (from glucose monitors to wheelchairs) are based on prices set by Medicare, the federal insurance program for the elderly. These costs amount to $37-billion in medical spending annually in the U.S. But, Kowalczyk writes, a lot of that is wasteful spending for Medicare:
Medicare has struggled for a decade to implement competitive bidding as a way to combat overpayment, but the industry has lobbied hard against these changes. And because payments to hospitals and doctors account for a much larger chunk of health care spending, private insurers generally have not focused as acutely on the cost of medical equipment.
Jeremy Hobson joins Robin Young as co-host of Here & Now in its new 2-hour format, from WBUR and NPR.
Opposition leader Olga Bielkova says the attempt by the police to disperse protesters overnight in Ukraine was yet another instance of the country’s president breaking a promise.2 Comments | more »
Marianne Mollmann, director of programs at the International Gay and Lesbian Human Rights Commission, joins us to discuss gay rights from India to Uganda.6 Comments | more »
In the early 1980s, Nelson Mandela’s name was virtually unknown in the United States. In fact, it was Steve Biko, who first put the struggles of black South Africans into public consciousness in the U.S.9 Comments | more »