Michigan House speaker floats price controls for hospitals
By Craig Mauger, cmauger@detroitnews.com
Michigan House Speaker Matt Hall said Friday he’s considering pursuing a new state commission or fee schedules to limit what hospitals can charge for their services, as part of a bid to lower health care costs.
The Kalamazoo County Republican made the comments during an appearance on WKAR’s “Off The Record” overtime segment while discussing his caucus’s priorities for the upcoming year. The speaker referenced the Michigan Public Service Commission, which currently gets to approve or alter rate increases proposed by gas and electric utilities that have monopolies within their service territories.
“I am looking at potentially proposing a new … public service commission, but for the hospitals, to regulate their price increases,” Hall said.
He added later, “We might need fee schedules.”
Hall’s comments came amid reports of rising health care costs nationwide and a push by some political candidates to focus on lowering medical bills and insurance premiums paid by their constituents. However, a new government panel to intervene in hospitals’ financial decision-making would represent a significant change for an industry that employs hundreds of thousands of Michigan residents.
Annual health spending in the U.S. increased by 62% from about $3 trillion in 2014 to about $4.9 trillion in 2023, according to data tracked by the Kaiser Family Foundation.
Brian Peters, CEO of the Michigan Health and Hospital Association, said Friday that his group “is always willing to engage in discussions that can improve affordability and reduce government intervention.”
“Hospitals remain committed to addressing rising healthcare costs,” Peters said. ”Insurance premiums are ultimately determined by insurance companies, not hospitals, while independent analyses show that prescription drug costs and administrative expenses are driving insurance premium inflation.”
The website of McLaren Health Care, which has 12 hospitals, describes billing, costs and charges as “very complex.”
“The price a patient sees on their hospital bill reflects not just the specific care team who treated them, but also overall operational costs that keep the hospital running 24 hours a day, 365 days a year,” the McLaren website says.
The Detroit News reported in October that Blue Cross Blue Shield of Michigan was hiking its small group insurance premiums an average of 12.4% next year for its Blue Care Network HMO plans. In the individual market, state regulators allowed Blue Cross to hike its premiums by 24%, as three insurers stopped selling so-called “Obamacare” plans in Michigan.
In an interview in October, Tricia Keith, Blue Cross’s CEO, referenced a study by the RAND Corp. that concluded hospital mergers gave the health systems more negotiating power with insurers, increased patient volume for services, reduced competition and contributed to increased health care spending.
“We are concerned with (hospital) consolidation because there are a number of studies that have come out and shown — the RAND study, for instance — that hospital consolidation does drive up prices,” Keith said.
More: Q&A: Blue Cross CEO Tricia Keith on what’s driving double-digit health insurance increases
During his public television interview on Friday, Hall said something has to be done to lower health care costs.
“We see these big Taj Mahals they’re building,” Hall said of new facilities built by Michigan hospital systems. “I’m just saying it’s out of control.”
Some hospital executives, including Henry Ford Health CEO Bob Riney, have defended new medical facilities. Henry Ford Health is currently erecting a new $2.2 billion hospital across West Grand Boulevard from its flagship Detroit hospital, where the tower dates back to 1915.
“I would ask people to think about the inefficiencies in the design of a building that was designed to be a hospital over 100 years ago,” Riney said. “… If anyone has shown a great use of a building for a hundred-plus years, it’s us.”
More: Q&A: Henry Ford Health executives defend rising costs of care, new Detroit hospital
Democrats in the Michigan Senate have approved bills to create a new state board with the power to study prescription drug costs and set maximum caps on prices if they’re determined to be too expensive for patients.
The Senate voted in favor of those bills in April, but the Republican-controlled House has not acted on them.
Sen. Darrin Camilleri, D-Trenton, said the ideas Hall floated Friday seemed somewhat similar to the Senate’s plan for the Prescription Drug Affordability Board.
“We have a great plan that’s sitting in the House chamber and that’s been sitting there for many months,” Camilleri said.
Camilleri added that Hall has continued to attack Michigan’s hospitals. In September, Hall called for the ouster of Brian Peters, the leader of the Michigan Health and Hospital Association, after the group criticized the House GOP’s budget plan.


