AG Nessel and AG Coalition Ask Congress to Fix Prices on Medical Equipment and Supplies

(April 22, 2020 5:44 PM)  Attorney General Dana Nessel is among coalition of attorneys general from across the country in sending a letter today to Congress asking lawmakers to temporarily fix the prices of medical equipment during the coronavirus disease 2019 (COVID-19) pandemic.  

In the request, the states are asking Congress to regulate prices of medical supplies and equipment to fight against artificial inflation and to avoid those with the supplies from profiteering by playing government agencies and hospitals against each other.

The attorneys general note there is a widespread shortages of ventilators and personal protective equipment (PPE) like face masks, gloves and gowns.  The resulting competition pits hospitals, health care providers, federal, state, local and tribal governments against each other in trying to acquire the equipment and PPE.  The shortages have resulted in competitive bidding wars among those entities.

“COVID-19 has stretched thin the health care industry’s supply chain and it is threatening to drain public coffers as governments at all levels are pitted against each other in bidding wars, fighting to procure the equipment their residents and employees desperately need,” Nessel said. “This country needs a united effort to keep the health care industry from unjustly profiting while the American people suffer. In normal times, supply and demand drive prices. But in a public health emergency when lives are at stake, government intervention is sometimes needed, and I urge Congress to act.” 

In a statement the coalition said, “States have exercised their authorities to control prices in public utilities, like electricity and natural gas. But federal oversight of the health care industry during the current public national emergency would be far more effective than an attempt by states to exert authority, as any corporate supplier could simply choose not to conduct business in that state – further worsening the emergency situation for that part of the country. “

Joining Nessel in sending this letter are the attorneys general from Connecticut, Delaware, Iowa, Maine, Massachusetts, Minnesota, Nevada, New Mexico, New York, Oregon, Vermont and Washington.   

Click here to view a copy of the letter.