The Harris Poll^® #64, September 9, 2004

Most People Think Health Care Costs Are "Unreasonably High" and Favor Price Controls, According to Harris Poll

For many people health care costs stand out compared to other goods and services as being exceptionally expensive. Majorities of the public think that the cost of prescription drugs, hospitals and doctors’ services are unreasonably high, whereas relatively few people think this is true for the cost of packaged goods, clothes and automobiles. As a result, majorities favor federal government price controls of prescription drugs and hospitals, and a plurality favor price controls for doctors’ bills.

These are some of the results of a nationwide telephone poll of 1,012 adults surveyed by Harris Interactive® between August 10 and 15, 2004.

We should note that the fact that many people favoring price controls does not mean that we will have them any time soon. Rather it is another indication of a high level of public concern and a desire to have someone do something about high prices.

Fully 66 percent of all adults think that prescription drug prices are unreasonably high. This is an increase over the number who felt this way in three earlier surveys conducted over the last three years. Last year 57 percent thought that prescription drug prices were unreasonably high. How much this is based on personal experience or media coverage, we don’t know.

Presumably it is this strong feeling about prescription drug prices which causes a 60 percent to 35 percent majority to favor federal government price controls.

The number who feel that hospital charges are unreasonably high (64%) is virtually identical to the people who feel that way about prescription drug prices.

Over the last four years, the proportions of adults who felt that hospital charges were unreasonably high has varied between 54 percent and 67 percent. These numbers would surely be higher if consumers had to pay a higher proportion of their own hospital bills, or if their out-of-pocket costs for hospital care had risen sharply over the last few years, like the out-of-pocket costs for prescription drugs.

The 55 percent to 39 percent majority who favor federal government price controls of hospitals is a little lower than the majority favoring price control of prescription drugs.

A majority, but a smaller one, (55%) also thinks that doctor bills are unreasonably high. This is a significant increase over previous years. From 2000 to 2003, between 38 percent and 49 percent felt this way. The increase since last year is a sizable 12 points, up from 43 percent to this year’s 55 percent. This may reflect increasing copays for doctor office visits.

When it comes to the federal government regulating the prices charged by doctors, the public is split with 48 percent in favor and 46 percent opposed.

"Would you say that the prices of most of the following products and services are fair and reasonable, somewhat high or unreasonably high?"

Base: All Adults

NOTE: Percentages may not add up exactly to 100% due to rounding.

"Would you say that the prices of most of the following products and services are fair and reasonable, somewhat high or unreasonably high?"

Base: All Adults

"Would you favor or oppose federal government price controls of the following products and services?"

Base: All Adults

NOTE: Percentages may not add up exactly to 100% due to rounding.

The Harris Poll^® was conducted by telephone within the United States between August 10 and 15, 2004 among a nationwide cross section of 1,012 adults (ages 18 and over). Figures for age, sex, race, education, number of adults, number of voice/telephone lines in the household, region and size of place were weighted where necessary to align them with their actual proportions in the population.

In theory, with a probability sample of this size, one can say with 95 percent certainty that the results have a statistical precision of plus or minus 3 percentage points of what they would be if the entire adult population had been polled with complete accuracy. Unfortunately, there are several other possible sources of error in all polls or surveys that are probably more serious than theoretical calculations of sampling error. They include refusals to be interviewed (nonresponse), question wording and question order, interviewer bias, weighting by demographic control data and screening (e.g., for likely voters). It is impossible to quantify the errors that may result from these factors.

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Q505, Q510