The Effects of Increased COVID-19 Laboratory Prices
GS Lab testing sites throughout the country charge about $380 for a rapid COVID-19 test while most drug stores charge $20.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) states that the price laboratories advertise on their public-facing websites is what has to be paid.
Congress has not limited the amount that the laboratories can charge insurance companies for COVID-19 tests. With the global health crisis and the necessity to test weekly at school campuses and workplaces, COVID-19 testing laboratories have increased for COVID-19 tests.
The increased prices in COVID-19 tests has put pressure on insurance plans that directly pay testing laboratories, which has led to insurance companies filing lawsuits against these COVID-19 testing laboratories.
A Blue Cross plan in Missouri sued GS labs for inflated COVID-19 testing prices and violating public policy.
Christopher Erickson, a partner of GS Labs, said GS Labs’ high prices are justified because of the good service and abundance of tests.
“You can book 15 minutes out with us on any given day, and get your results in 15-20 minutes,” Erickson said. “We have a nursing hotline where you can get your results interpreted. Our pricing is one of the most expensive in the nation because we have the best service in the nation.”
Even though GS Labs is protected under the CARES Act, some believe that GS Labs is not justified for charging more than the average price for COVID-19 tests.
“This is not like neurosurgery where you might want to pay a premium for someone to have years of experience,” said Sabrina Corlette, a public policy professor at Georgetown.
While Americans are not directly paying COVID-19 laboratory fees, insurance companies are paying it which consequently increases insurance premiums. With fewer people working in the past year during the global pandemic, it has also put more pressure on Americans to pay these increased health insurance rates.
Affordability problems towards health insurance may limit accessibility and discourage Americans from seeking care when they need it.
“It’s time that the federal government takes this on and solves it, so that 2.2 million people can get this care,” said Richard Besser, MD, president of the Robert Wood Johnson Foundation. “When you expand access to health care coverage you improve the health outcome.”
