Resmed CPAP Machines

Hi Folks !!
I'm an Aussie who recently purchased a CPAP Machine. Over the past few months I have been fuming about the marketing of CPAP Machines in Australia - particularly by Resmed, which of course is an Australian founded Company.

Hey, take a look at Resmed prices on the web in Australia and remember our Aussie dollar is only just a bit below the USD.

Yep, an S9 Autoset with Humidifier has an RRP of AUD 2448 and sells for about AUD 2250 - check out the Aussie web vendors.

What fires me up is that the machine was designed and is made in Australia. Even more gauling is the fact that the University of Sydney (State Owned) played a significant role in the development of the Resmed system and indeed pursued Resmed through the courts for non-payment of royalties.

So, I'm asking, how come the S9 and others are selling in the US for about half the price being asked on the Australian market.

And yes, how can a manufacturer place restrictions on the re-sale of a 'used' product through a public auction (CPAP Auction)?

Just like you guys, we have elderly retired peolpe on minimal income who depend on these machines to literally, keep breathing. What sort or morality justifies ripping them off?

From my point of view, this is a Restrictive Trade Practice and probably does involve Collusive Marketing Practices, as others on this forum have suggested. To be perfectly frank, I'm ashamed that an Australian company is employing marketing strategies like this. Down here in OZ, we talk about giving a bloke a "fair go" and that doesn't matter whether the bloke is an Aussie or one of our American brothers.

I don't know the answer to that. Could it be the difference in the health care system and how health insurance pays for the machine. I know with my insurance they pay a flat rate no matter what the machine is. They bill under a code for each part of the machine. So you can get the bargain low basic or maximize you insurance and get the top of the line. My DME prefers Resmed and prefers S9 autoset for all CPAP patients and uses the Bipap by resmed. They sell that machine at the max that my insurance will pay plus 20%. My part of that was $300.

Not all DMEs are this way though...some try to get the most profit they can get out of a sale. My DME Says they chose the machine and brand based on longevity, flexibility for the patient (auto vs straight CPAP). Basically they believe in the best bang for the buck for the patient. For that I am very grateful.

My other thought is maybe it has to do with exchange rates from one country to another. I do thinks its strange that resmed says the do not sell outside the US...but the are a none US company.

They sell that machine at the max that my insurance will pay plus 20%. My part of that was $300.

Sorry, as this is a bit off the original topic (prices in Australia), but be aware in the US, in most cases, it is insurance FRAUD for a DME to charge you a percentage ABOVE your insurer's allowable rate--even if it gets you the machine you want.

I may be misinterpreting what you said, though. If your co-pay is 20% of what the insurance pays, that's one thing (e.g. insurance sets the allowable rate at $100 and will pay 80% or $80 and you pay the remaining $20), but if the DME is trying to charge you over and above the rate they have contracted with your insurer to provide the equipment (e.g. insurance sets the allowable rate at $100 and will pay 80% or $80, and the DME charges you 20% of $100 in addition so your out of pocket cost is $40), then they are in most cases committing fraud.

Guy_from_Down_Under wrote:So, I'm asking, how come the S9 and others are selling in the US for about half the price being asked on the Australian market.

The straightforward answer is because the US market market is about an order and half of magnititude (15 times) larger than Australia

Guy_from_Down_Under wrote:and sells for about AUD 2250 - check out the Aussie web vendors.

http://www.cpapaustralia.com.au/shoppin ... bgod8yR7mQ

.... and that's not the cheapest Oz web vendor either. I paid under AUD$1800 for a fully kitted S9 Austoset from a local commercial supplier.

Cheers,

Bill

Janknitz wrote:

They sell that machine at the max that my insurance will pay plus 20%. My part of that was $300.

Sorry, as this is a bit off the original topic (prices in Australia), but be aware in the US, in most cases, it is insurance FRAUD for a DME to charge you a percentage ABOVE your insurer's allowable rate--even if it gets you the machine you want.

I may be misinterpreting what you said, though. If your co-pay is 20% of what the insurance pays, that's one thing (e.g. insurance sets the allowable rate at $100 and will pay 80% or $80 and you pay the remaining $20), but if the DME is trying to charge you over and above the rate they have contracted with your insurer to provide the equipment (e.g. insurance sets the allowable rate at $100 and will pay 80% or $80, and the DME charges you 20% of $100 in addition so your out of pocket cost is $40), then they are in most cases committing fraud.

Actually with a PPO insurance plan you can go to any provider you chose. The negotiated rate only applies when you are using in network services. The provider under the terms of their contract with the insurance company can't charge more than the allowable and they are not allowed to bill the patient for the difference.

But if you go to a none network provider for the same service...they can charge whatever they want to charge and charge the different to the patient. Which leaves you stuck with the bill. This is why insurance companies try to control what providers you use and they prefer that you use in-network providers if possible.

Its also the same reason when you have to use an out of network provider you apply for exception to policy...which means the insurance provider contacts the services provider to negotiate the rate and you know up front what you cost is..and they treat the claim as in network claim.

Failure to get pre-approval for certain procedures and to go out of network is usually met with a monetary penalty. My insurance reduces the portion they pay by as much as 50% or they can refuse to pay the claim all together!

Prices for consumer goods of all kinds vary from one continent to another. Some of you may recall that before the birth of the internet there were many sellers in N.A. of "grey" market goods. Electronics,cameras and more. These markets exist because mfrs. price the goods to what the market will bare!. Recently in Canada we had auto mfrs. selling identical cars in Canada for as much as 30% more than in the USA. When Canadians started crossing into the USA for vehicles the prices dropped quickly! Does Aus. still have huge import duties? If not just buy from the USA. Even in Canada the prices of CPAP equipment are much higher than in the USA. Greed is usually the real reason for the price differences!

Bob

Unfortunately, it's what the 'market will bear'. In HK it's also considerably more [2.5X].

On the other hand, pharmaceuticals are considerable less in many countries. As an example, a 10 mg lipitor tablet might be priced at $2.50 stateside, whereas in HK it could be well under a $1.00.

In some countries, pharmaceutical prices are 'regulated', therefore cheaper. In some countries, diagnostic tests/kits are regulated, so cheaper. In other instances, medical devices are not regulated, so considerably higher.