Testimony On HB 1647: White Bagging & Hospital Drug Markups
TAHP is neutral on HB 1647 and appreciates the author addressing our concerns regarding excessive markups for hospital-administered drugs.
The most expensive drugs are injectables and infusion drugs provided in hospitals and hospital-owned infusion centers. This cost is not based solely on the high prices of these drugs but also because hospitals are abusively marking up these drugs. New state and federal price transparency laws show that hospitals are marking up drugs at excessive amounts, on average 200% and up to 634% for cancer drugs. By comparison, Medicare will not pay more than a 6% markup or profit margin on one of these drugs.
Read TAHP’s full testimony.