Drug Companies Charge $1,000 for Sugar Water and Salt

Baxter International, a company that sells drugs to health care providers and pharmacies, billed Medicaid almost $1,000 for $1.71 worth of saline solution for more than 10 years.  That’s a 54,000 percent markup!

Baxter also charged the same amount for sugar water worth $2.25. When their scheme was finally uncovered, it also implicated 11 other brand name and generic prescription drug manufacturers.  The drug makers charged similarly artificially raised prices for an untold number of drugs.

Wallet Pop reports:

“It worked because the companies exploited a statute that shuts out Medicaid and Medicare programs from finding out the true market price of medications. The law also prevents health insurance agencies from negotiating lower drug prices and mandates they must accept the wholesale price reported to them.”

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