$2 to $700: The Wild World of Pharmaceutical Markups (And Why AI Might Be the Answer)
I don’t know about you, but nothing makes me question reality quite like seeing a hospital charge $700 for a bag of saline solution that costs… wait for it… $2 to produce.
No, that’s not a typo. That’s healthcare math.
And if you think saline is the only thing with a mind-boggling markup? Oh, honey. Grab a glass of wine (or a copper cup of water if you read my last article), because we’re about to dive into some of the most absurd pharmaceutical price hikes out there.
And yes, by the end of this, you might seriously wonder if it’s time to let AI run the show.
💉 The $700 Saline Bag Is Just the Beginning
Let’s start with that saline bag. You know, the one hospitals hook up to you for dehydration, surgery, or literally any reason under the sun. It costs manufacturers about $1 to $2 to make. And yet, hospitals in the U.S. routinely bill patients $500–$700 per bag.
Sure, they’ll say it’s for “overhead” or “supply chain” or “admin costs.” But I’ve worked in hospitality…I know markup when I see it. This isn’t a 20% upcharge. This is straight-up highway robbery with a drip line.
The Insulin Scandal
If you’re diabetic, you already know this nightmare: insulin, a life-saving drug that costs just $2 to $6 per vial to manufacture, routinely sells for $300–$600 per vial in the U.S.
Why?
Because Big Pharma can.
And before anyone says “but research and development!”…insulin was discovered over 100 years ago. The original inventors literally sold the patent for $1 because they wanted it accessible to everyone.
If they were alive today, they’d probably flip a table.
Meanwhile, in places like Canada, insulin costs $30–$40. Same drug. Same effectiveness. Just… not under America’s private healthcare price circus.
EpiPens: An Allergy Tax
Remember the EpiPen scandal? The price of a two-pack jumped from $100 in 2009 to over $600 by 2016.
Same product. No meaningful improvements. Just a corporate game of “how much can we get away with before people riot?”
Spoiler: they got away with it.
People with severe allergies are literally forced to pay hundreds for a device that’s only used once, and could mean life or death. Imagine if fire extinguishers cost $600 and had to be replaced every year “just in case.”
Cancer Drugs With Mortgage-Level Prices
Some chemotherapy drugs have crossed into six-figure territory. Take Revlimid, a drug for multiple myeloma:
Cost to manufacture: estimated under $500 per month
U.S. price? Over $20,000 per month.
Yes, you read that right.
It’s gotten so bad that some patients are crowdfunding cancer treatments online. Others skip doses or cut pills in half just to survive financially.
A healthcare system where patients have to choose between going bankrupt or dying? That’s not healthcare. That’s cruelty with a corporate logo.
But Why Are Prices Really This High?
Here’s where it gets tricky. The pharmaceutical industry will tell you:
“We need to cover research and development.”
“We’re funding future innovation.”
“Patents protect our investment.”
But the truth? Most “new” drugs are just slight tweaks of existing formulas designed to extend patents and profits. Actual breakthrough drugs are rare. And once a drug is approved, production costs plummet while prices mysteriously stay sky-high.
And in countries with price controls (like most of Europe)? These same companies sell the same drugs for a fraction of U.S. prices.
America isn’t subsidizing innovation. We’re just letting corporations write the price tags.
Is It Time for AI to Step In?
At this point, you might be wondering: “Could AI do it better?”
Honestly? Maybe.
We’re already seeing AI outperform humans in reading medical images and diagnosing certain diseases. It’s faster, cheaper, and doesn’t need a yacht in the Mediterranean.
In fact, I wrote a whole piece on how AI doctors are already out-diagnosing human doctors in some fields. You can read it here.
If AI can spot cancer earlier, recommend treatments faster, and cut out layers of middlemen? Imagine what that would do for medical costs. And as AI continues to get smarter and smarter, this will absolutely help with earlier diagnosis.
I’m not saying we should turn hospitals into Westworld tomorrow. But if letting an algorithm optimize supply chains and pricing means no one has to pay $700 for saltwater? Hand me the robot clipboard.
What’s the Solution?
I wish I had an easy answer. But the U.S. pharmaceutical system is a tangled web of:
Patent law loopholes
Lobbying power
Lack of price regulation
And a healthcare model that treats patients like customers, not people
Some reforms are slowly happening (like insulin price caps). But unless we overhaul the system (or inject some radical transparency and AI-powered oversight) stories like the $700 saline bag will just keep happening.
Until then? Stay informed. Ask questions. And maybe… maybe trust the robots a little more than the suits in charge.
Because if we’ve learned anything from these markups? The system isn’t broken.
It’s working exactly as designed.
By the way, if you want a copper water cup like the ones I’ve been using to boost immunity, you can grab one here on Amazon.
