MADISON — Two recent reports on Wisconsin and national healthcare costs paint a gloomy picture for hardworking Wisconsin families and employers. The reports, issued by the Center for Research on the Wisconsin Economy (CROWE) and the Health Care Cost Institute, should serve as a wake-up call for the governor and policymakers.
According to the Health Care Cost Institute’s Health Costs Landscape data, Wisconsin’s health care costs are the second highest in the nation and 55% higher than the national average, despite the state’s overall health care utilization being 6% below the national average. As a result, health care is significantly less affordable in Wisconsin, where costs consume 34% more of per‑capita income than the national average, ranking third highest nationwide.
CROWE’s recent report further reinforces the fact that health care costs are harming Wisconsin families’ pocketbooks. The study shows that since 2000, national hospital price service costs have spiked 260%, rising nearly three times faster than Wisconsin’s median household incomes.
“Health care costs in Wisconsin are rising rapidly, and hardworking families can’t keep up,” said WMC Associate Vice President of Government Relations Rachel Ver Velde. “These studies highlight with hard data what WMC and employers throughout have been sounding the alarm on for years — no state can remain economically competitive when health care prices rise nearly three times faster than household incomes.”
CROWE finds egregious price disparities for the same services and procedures at different hospitals in Wisconsin. According to the study, prices for the same colonoscopy procedure range from less than $1,500 to more than $4,600 at varying hospitals across the state. In fact, CROWE found that employers and employees are missing out on tens of millions of dollars of savings alone on the five procedures they researched for this study.
While this extreme price disparity is alarming on its own, it is compounded by the fact that families and employers are typically unaware of the cost until after the procedure has already been performed due to Wisconsin’s failure to enact and enforce full health care price transparency, including a consumer-facing price tool.
These unchecked costs are eroding employer competitiveness and putting Wisconsin jobs at risk. According to the study, nearly seven in ten Wisconsin employers say rising health care costs have forced them to cut hiring, reduce investment, lower compensation, or raise prices.
“The health care system continues to push costs onto families and employers while keeping prices hidden and unchecked,” said Ver Velde. “Full transparency isn’t optional—it’s an essential first step to rein in costs, protect workers’ paychecks, and keep Wisconsin competitive.”
Read more about WMC’s agenda to make health care affordable in the Wisconsin Competitiveness Report.
