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Michigan Ranks 8th Best Among All States For Medical Costs, Milestone Medical Costs Study Says

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Not entirely clear how Universal Drugstore's data points were constructed, but people will be talking about this study. Universal Drugstore is an international prescription service provider with access to a lot of nonpublic data and enough experience to interpret a lot of public data. Major issues in developing this kind of comparable cost study are: percent insured, reimbursement levels, government subsidies, and frankly prevarications in reporting.

The study itself is too long to reprint here, but is worth reading in its entirety because it also provides cost data on the most expensive surgical operations and most common causes of hospitalizations. Here is a post on the Milestone Medical Cost study from CBS Detroit.

https://www.cbsnews.com/detroit/news/michigan-ranks-among-top-10-best-states-for-medical-costs-study-says/

Michigan ranks among top 10 best states for medical costs, study says
By Sara Powers - October 24, 2023

(CBS DETROIT) - Healthcare costs can vary drastically depending on the state.

To determine which states are the best for medical costs, Universal Drugstore, an international prescription service provider, looked at factors including the average cost of an ER visit, hospital stay and childbirth, the most expensive surgical procedures, the rate of access to medical care and which states have the highest rates of people avoiding receiving care due to costs.

The following is a list of the top 10 best states for medical costs, according to the study:

North Dakota
Iowa
Maine
Vermont
Montana
Minnesota
Wisconsin
Michigan
Massachusetts
South Dakota

The findings show that, on average, Michiganders pay $1,273 for an ER visit and $12,065 for a hospital stay. In addition, the average cost of childbirth in Michigan is $12,711, and the rate of residents who avoid medical care due to its costs is 7.9%.

The best state for medical costs was North Dakota, with the average cost of an ER visit being $1,245 and the average hospital stay cost at $8,136. Conversely, Texas ranked as the worst state for medical expenses, as residents pay an average of $2,318 for an ER visit and 13,154 for a hospital stay.

The following is a list of the 10 worst states for medical costs:

Texas
Florida
Nevada
Arizona
California
New Jersey
Colorado
South Carolina
Washington D.C.
Missouri

The study provides rationales for the top three results in each category, so visit this site if you want to know more:

https://www.universaldrugstore.com/milestone-medical-costs



   
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Abigail Nobel
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Joined: 5 years ago
Posts: 1226
 

Contrasting different, somewhat overlapping metrics, the Mercatus Center offers an alternate angle on healthcare cost and quality.

In the HOAP analysis, Michigan ranks 15th. Our placement on certain individual metrics seems dubious here as well. For example, I'd give us a lower score on Certificate of Need restrictions.

However, the creative selection of metrics gives great fodder for state health policy discussion, and I highly recommend bookmarking it for reference.

Interactive map omitted in my c/p of the home page below.

https://www.mercatus.org/research/research-papers/healthcare-openness-and-access-project-2020-full-release

Healthcare Openness and Access Project 2020: Full Release

State-by-state measures of the flexibility and discretion that patients and providers have in managing health and healthcare

 

The Healthcare Openness and Access Project (HOAP) seeks to raise important questions, such as how open each state’s laws and regulations are to institutional variation in the delivery of care and how much access to varying modes of care this openness confers on the state’s patients and providers. The goal of HOAP is to encourage these types of questions rather than to provide definitive answers.

NOTE: A preliminary version of this report was rush-released in the spring of 2020 to help policymakers cope with the unfolding COVID-19 pandemic. This new version incorporates small changes, clarifications, and peer-review feedback that we have collected since that time. We note that the data in this document mostly reflect the status quo ante prevailing just as the pandemic began. Over the course of 2020, most states have somewhat relaxed regulations for the duration of the public health emergency. Were we to incorporate these temporary changes into our data, it is likely that most states’ scores would rise. Thus, future HOAP scores may be greatly impacted by whether state regulations return to the early-2020 status quo or whether these emergency measures become permanent. 

Background and Study Design

HOAP’s overall index averages five equally weighted categories of indicators (variables) that measure the discretion of patients, providers, and institutions over broad areas of healthcare, such as public health and telemedicine. The equal weighting of indicators within each category is an explicit recognition of the fact that no single set of weights should be considered “correct.” HOAP is constructed so that readers and researchers can alter the weights assigned to different variables to reflect their own preferences.

The first iteration of HOAP (HOAP 2016) was issued in December 2016. HOAP 2018, issued in June of that year, revised the data to reflect changes in state laws in the interim and to reflect modest changes in sources of data. HOAP 2020 incorporates new indicators that may better represent the discretion states allow in the provision of healthcare goods and services.

HOAP 2020’s five categories replace the previous editions’ 10 subindexes. Changes in state rankings between 2018 and 2020 reflect both changes in methodology and changes in states’ laws and regulations, so one should be cautious about reading too much into the numeric differences between HOAP 2018 and HOAP 2020.

Key Takeaways

  • Insurance isn’t the only issue. To be sure, insurance is a very important part of the healthcare system, and HOAP does include some insurance-related indicators. However, simultaneous progress on the three goals of healthcare reform (lower costs, higher quality, and broader coverage) will require fundamental changes in the technologies and structures of care and in how, where, when, and why care is delivered. HOAP highlights institutional features that help determine the degree to which experimentation is possible.
  • States matter in healthcare policy. States possess great power to determine which providers may perform what services, the means by which they may do so, their legal responsibilities in the event that patients suffer harm, and so forth. The HOAP index suggests how the states differ in encouraging delivery-system innovation.
  • Perception of state policies does not always match reality. For example, a leftward tilt in the Affordable Care Act debate does not necessarily correlate with tight centralized control of healthcare at the state level. Nor does a rightward tilt in the debate always comport with extensive patient-provider discretion. For example, HOAP data suggest that “blue” states Oregon and Hawaii offer broad leeway to patients and providers, while “red” states Arkansas and Kentucky have some of the most restrictive healthcare laws and regulations in the nation.
  • Comparisons among states are important. HOAP as a whole provides a great deal of comparative data on healthcare policy in the states. It is a one-stop source of information on policy differences around the country. As an example, 41 states require a physician’s signature to prescribe oral contraceptives. So, to many, that requirement may seem to be the natural order of things, a universal. But 10 jurisdictions (including the District of Columbia) allow pharmacists to autonomously prescribe oral contraceptives. Perhaps this anomaly will persuade policymakers in other states to at least ask how that market functions in those 10 jurisdictions.
  • Discussion is valuable for determining how to move forward. HOAP should become a catalyst for discussion, but it is not the definitive measure of openness, access, flexibility, or discretion in healthcare for any particular state. If observers question aspects of the index and offer alternative measures, then the project will have done its job.

 

Dr. Robert Graboyes was a senior research fellow at the Mercatus Center from 2013-2022. Author of “Fortress and Frontier in American Health Care,” his work asks, “How can we make health care as innovative in the next 25 years as information technology was in the past 25?”

Previously, he was health care advisor for the National Federation of Independent Business, economics professor at the University of Richmond, regional economist/director of education at the Federal Reserve Bank of Richmond, and Sub-Saharan Africa economist for Chase Manhattan Bank. His work has taken him to Europe, Africa, and Central Asia. An award-winning teacher, he has also taught health economics in graduate programs at Virginia Commonwealth University, the University of Virginia, George Mason University, and the George Washington University.

His degrees include a PhD in Economics from Columbia University; master’s from Columbia University, Virginia Commonwealth University, and the College of William and Mary; and a bachelor’s from the University of Virginia. He has chaired the National Economists Club, Richmond Association for Business Economics, and National Association for Business Economics Healthcare Roundtable.

He won the Reason Foundation’s 2014 Bastiat Prize for Journalism, an international competition for “writing that best demonstrates the importance of individual liberty and free markets with originality, wit, and eloquence.”



   
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