Woman Gets Stung By Scorpion, Goes to Hospital for AntiVenom, Gets $83,000 Bill

[Kregisen]

http://www.azcentral.com/business/a...-sting-leaves-woman-big-bill.html?sf5898739=1

Marcie Edmonds was tearing open a box of air-conditioner filters in her garage last June when she felt a sharp sting in her abdomen.

The 52-year-old Ahwatukee Foothills woman had never felt a scorpion sting before that day. She had no intention of seeking medical help, but within an hour of the sting, Edmonds' mild tingling sensation worsened with throat tightness, blurry vision, darting eyes and tense muscles. She could not walk and had trouble breathing.

With the help of a friend, she called Poison Control and was advised to go to the nearest hospital that had scorpion antivenom, Chandler Regional Medical Center. At the hospital, an emergency room doctor told her about the antivenom, called Anascorp, that could quickly relieve her symptoms. Edmonds said the physician never talked with her about the cost of the drug or treatment alternatives.

Her symptoms subsided after she received two doses of the drug Anascorp through an IV, and she was discharged from the hospital in about three hours.

Weeks later, she received a bill for $83,046 from Chandler Regional Medical Center. The hospital, owned by Dignity Health, charged her $39,652 per dose of Anascorp.

The Arizona Republic reported last year about the pricey markup Arizona hospitals were charging for the antivenom made in Mexico. Pharmacies in Mexico charge about $100 per dose.

After the Food and Drug Administration approved the drug last year, Tennessee-based Rare Disease Therapeutics sold the drug to a distributor for $3,500 per dose. The distributor charged hospitals about $3,780 per dose.

The Republic polled several hospitals in November, finding that hospital charges for the serum ranged from $7,900 to $12,467 per vial. At the time, Chandler Regional declined to tell The Republic how much it charged for Anascorp.

Edmonds' insurer, Humana, has paid Chandler Regional $57,509 for the bill. The hospital has asked Edmonds for the balance of $25,537.

Chandler Regional issued a statement indicating that Edmonds' charges represented the out-of-network costs for her treatment. Chandler Regional is not part of Humana's network, so she was charged the hospital's full billing rate.

"We believe no one should delay seeking needed medical care because they lack insurance or have high medical costs," the hospital's statement said.

Edmonds, who is a counselor, knows the intricacies of health-care billing, but she believes the hospital's wholesale charges should be explained to the public.

She was astonished to see the amount she was charged. "Everyone I talk to says, 'You've got to be kidding,' " when she explains her bill.


Read more: http://www.azcentral.com/business/a...woman-big-bill.html?sf5898739=1#ixzz25XPBPp6L

The local newspaper's facebook page posted this story today and the comments are riddled with people saying "those greedy pharmaceutical companies trying to make a buck!! This is why we need obamacare" etc. They are very misled as to how to fix this problem. The solution is more competition and less regulation (regulation stiffles competition), not trying to get rid of capitalism. My question to you guys is, how come vials of antivenom are $100 in Mexico, but thousands of dollars in America, and how come the hospital is getting away with selling it for $40,000 per dose? I am no expert on anything related to healthcare, but it seems like the issue is the hospital may have a monopoly on the local community and can thus charge whatever it wants for its services with inelastic demand. Is the solution simply more hospitals?

 

[Anti Federalist]

Yes, and it's been a monopoly for 100 years now.

Note that the drug is sold in Mexican pharmacies for $100.

I'll bet money that the drug is OTC and self administered.

 

[Kregisen]

How do hospitals typically work? Are they private or private/public hybrid?

 

[Acala]

The price of goods will rise to the highest level at which the entire supply can be cleared. In other words, people sell the drug for $4000 because they can get $4000 for it. They can get $4000 for it because of government subsidy, government-mandated insurance, and government-limited competition through regulation.

 

[Pericles]

Nothing good ever happened to me in a hospital - with the possible exception of being born.

 

[DamianTV]

This is a prime example of what is wrong with our Medical System. Your Money or your Life. Why not just put a fucking gun to your head if you are having a heart attack?

 

[Anti Federalist]

How do hospitals typically work? Are they private or private/public hybrid?

They can be all three:

Public non profit.

Private/public hybrid (like a co-op).

Private for profit.

Depends on the state, and each facility.

 

[Brian4Liberty]

This problem is caused by oligopoly, insurance and government interference. The solution is more competition.

 

[Kregisen]

The price of goods will rise to the highest level at which the entire supply can be cleared. In other words, people sell the drug for $4000 because they can get $4000 for it. They can get $4000 for it because of government subsidy, government-mandated insurance, and government-limited competition through regulation.

I understand how prices work (econ minor). Are the hospitals getting government subsidies? Are they're selling them for $40,000, not $4,000. The distibutor mentioned in the article is selling for $3,000-$4,000.

 

[Brian4Liberty]

This is a prime example of what is wrong with our Medical System. Your Money or your Life. Why not just put a fucking gun to your head if you are having a heart attack?

The sharks attack when there is any combination of emotion and emergency.

 

[JK/SEA]

SCORPIONS?....WHOA...

https://www.youtube.com/watch?v=AvHqo6a6D1w

 

[Kregisen]

This problem is caused by oligopoly, insurance and government interference. The solution is more competition.

How come this oligopoly exists? Why aren't more hospitals opening up to rake in these huge margins?

Insurance plays a role obviously because suddenly when you aren't paying for the costs directly, you are much more willing to buy the product.

What kind of government interference is occurring?

And lastly, how would you go about creating more competition? Why aren't more entrepreneurs opening up hospitals? Is it simply because the upfront costs of hundreds of millions of dollars? Why isn't Donald Trump going into the hospital business?


The solution to this problem is definitely through more competition in the free market, but why isn't that occurring already!?!

 

[AGRP]

Lesson? Free markets are not to be trusted here, but they mysteriously work in third world countries. If she would have lived in Mexico where scorpion bites are most likely just as common, perhaps a local medic would have done it for a smaller fee than $100.

 

[VIDEODROME]

What if afterward the patient went to Mexico and bought 2 doses. Then brought it them to America and offered the drug doses to the hospital to replace the ones they used?

 

[Anti Federalist]

What if afterward the patient went to Mexico and bought 2 doses. Then brought it them to America and offered the drug doses to the hospital to replace the ones they used?

I count about 15 felonies there.

Arrest and prison is what would happen.

 

[AGRP]

What if afterward the patient went to Mexico and bought 2 doses. Then brought it them to America and offered the drug doses to the hospital to replace the ones they used?

Thrown in prison for distribution/possession of a "drug" without a license/prescription. It's best these things are not allowed in local pharmacies (Land of the free) because then a selected few couldn't make $100,000 on a $100 product. Same with cocaine, marijuana, liquor, etc.....Monopolies are soooooo good for the few.

 

[VIDEODROME]

Okay I guess I didn't realize how seriously regulated something like AntiVenom is.

Especially when another post speculated it might be over the counter.

 

[Acala]

How come this oligopoly exists? Why aren't more hospitals opening up to rake in these huge margins?

Insurance plays a role obviously because suddenly when you aren't paying for the costs directly, you are much more willing to buy the product.

What kind of government interference is occurring?

And lastly, how would you go about creating more competition? Why aren't more entrepreneurs opening up hospitals? Is it simply because the upfront costs of hundreds of millions of dollars? Why isn't Donald Trump going into the hospital business?


The solution to this problem is definitely through more competition in the free market, but why isn't that occurring already!?!

The health care business is the most heavily regulated business I can think of. Virtually any product or profession that claims to have any therapeutic benefit requires government licensing unless specifically exempted.

To answer your question, in most areas you CAN'T build a hospital without demonstrating to a government board the need for the hospital.

The supply of health-related goods and services is choked tight by government regulation.

How do you fix it? You get government out of health care at every level in every way. No regulation, no licensing, no subsidy, no insurance requirements. Nothing. Nada. Government OUT of health care.

 

[specsaregood]

//

 

[presence]

What kind of government interference is occurring?

Go ask for anti-venom at the local CVS... offer cash.