The shocking world of US health costs

The podcast episode, hosted by Tim Harford, investigates a listener's query about the high cost of medication in US hospitals, specifically a claim that a Valium pill costing $3 in a pharmacy could be $750 in a hospital. Harford interviews Elisabeth Rosenthal, a healthcare journalist and editor-in-chief at KFF Health News, who explains the complex and often exorbitant billing practices in US hospitals. Rosenthal details how hospitals, many of which are non-profit, leverage programs like 340B to buy drugs at reduced rates and then significantly mark up prices, often disaggregating charges for every item and service. She highlights the political influence of large hospital systems and the severe financial burden on Americans, even those with insurance, due to high deductibles, co-insurance, and medical debt. The discussion underscores the "bonkers world" of US hospital bills and the challenges individuals face in navigating and affording healthcare.