It is a common misconception that drug prices do not vary, or at the least do not vary much. While everyone realizes that there is a vast price gap between brand name drugs and their generic counterpart, they don’t realize the price disparity from one pharmacy to another. It is a win for the prescription drug consumer when they begin to realize that, in every town across the country, pharmacies place a wide-ranging markup on their drugs.
All pharmaceutical retailers ranging from large chains to grocery stores, to the old “mom-and-pop” drug stores, make a good deal of their profit from the markup they place on drugs, generic drugs in particular.
Most pharmacies do not advertise, or even display drug prices, causing a false perception that prices are somewhat standardized. You can perform your own investigation by calling your area pharmacies and asking for the price of your drug. They should not hesitate to give you this information over the phone.
California Survey
Senator Dianne Feinstein of California said, “I sent my staff out to compare generic drug prices in pharmacies all across California... (Spring 2006), and the differences in the prices pharmacies are charging for the same drugs astounds me. ... doing a little price comparison research on local pharmacies is an easy way for consumers to cut down on the amount of money they spend on medications.”
Senator Feinstein’s survey found that the price of a commonly used generic prescription drug, Albuterol, prescribed for asthma, can vary as much as $36 from pharmacy to pharmacy. In this survey, Costco consistently offered the lowest generic drug prices.
Michigan News Story
In a report dating from 2004, Steve Wilson of WXYZ.com in Detroit, found the same widely fluctuating generic drug prices, with “
markup(s) of 3,000%, 4,000%, even 5,000%”. The chart compiled with his report shows these percentage markups on various generic drugs at each Detroit area pharmacy, including a few nearby Canadian pharmacies. Steve Wilson’s report questioned the reasons behind these huge markups and concluded, “
who remains the undisputed champ in generic drug pricing? It’s still Costco, the warehouse store where you don’t need to be a member to get your prescriptions filled at rock-bottom prices.
"
Florida Drug Comparison Site
Another tool for comparison is a site compiled by the Florida Attorney General, Charlie Crist, and the Agency for Health Care Administration (AHCA), http://www.myfloridarx.com. This website tracks the prices of the 100 most commonly prescribed drugs in Florida. It makes drug prices searchable by county, city, and specific drug and gives results broken down by prescription strength and pill count. The results are surprising; for the drug Naproxen in Brevard County, Florida, 500 MG Tablets with a 60 count supply showed the lowest price at $16.54 and the highest at $90.59. Sites such as these are invaluable in helping consumers easily compare drug charges in their vicinity.
K Mart offers 90 days for $15
Some of the well known discount retailers have stepped up with some real price saving on certain generic drugs. Beginning about the same time as the Medicare Part D Initial Enrollment Period ended in May 2006, Kmart began to offer a 90-day supply of some generic drugs for $15. This pricing has remained in effect since then at all 1,100 Kmart pharmacies nationwide. Mark Doerr, Vice President of Kmart Pharmacy said that the “$15 cost spread over three months ultimately means that customers are paying $5 a month for refills, but saving money on gas and valuable time associated with frequent trips to the pharmacy." (Source: Senior Journal)
Walmart’s $4 Generics
It has been widely reported that in September 2006, Walmart lowered the prices on 300+ generics (that number includes a variety of dosages of solid or liquid forms of 143 drugs) to $4 for a 30 day supply, beginning in their Tampa Bay, Florida stores.
This price was almost immediately matched by Target stores in Tampa. Target has not said if they will follow suit nationwide, but that they have a policy to be price competitive with Walmart.
Walmart initially anticipated expanding to other states by January 2007 and throughout the rest of the country in 2007. Instead they have rolled the program out nationally at a much quicker pace, spurred on, they say, by customer response. At any rate, on October 19, 2006, Walmart announced the expansion of the $4 generics to 14 more states, this only two weeks after rolling out the low-cost program to all of Florida. On October 26, Walmart added twelve more states, bringing the total to 27, AK, AL, AR, AZ, DE, FL, GA, IA, IL, IN, KS, MD, MI, MO, MS, NC, NH, NJ, NM, NV, NY, OH, OR, SD, TX, VA, VT. They now anticipate national coverage by the end of the 2006.
Walmart Stores Inc. officials said the reduced price represents a savings to the customer of up to 70 percent on some drugs. The average monthly cost for a generic drug prescription is $28.74, according to the National Association of Chain Drug Stores. [The average monthly cost] for branded drugs... is $96.01. (Source: MSNBC.com)
Free Antibiotics at Meijer
Midwest retailer, Meijer announced on October 23th that all of its pharmacies will fill prescriptions for seven generic oral antibiotics without charge. Fourteen-day supplies of the drugs -- amoxicillin, cephalexin, SMZ-TMP, ciprofloxacin, penicillin-VK, ampicillin and erythromycin -- will be given free of charge to any person with a prescription, regardless of insurance status, the retail chain said. These make up at least 70 percent of the generic antibiotic prescriptions for children that Meijer fills. Based in Grand Rapids, Michigan, Meijer operates 176 family owned “supercenters” in Illinois, Indiana, Kentucky, Michigan and Ohio.
The Bottom Line
It pays to keep a close eye on what you are being charged for your prescriptions. If you are willing to do a bit of price comparison work, you may be able to save a substantial amount on at least some of your prescription drug needs. In the end this could be a help to consumers especially those who find themselves in the Medicare Part D Doughnut Hole.
PLEASE NOTE: If you use different pharmacies to fill your prescriptions, be certain to provide each pharmacist with a list of the drugs and supplements you are taking in order to avoid potentially harmful interactions.
RESOURCES:
Senator Dianne Feinstein, California, survey was conducted April 17-28, 2006
http://feinstein.senate.gov/ 06releases/ r-generic-drug0508.htm
Compiled by the Florida Attorney General, Charlie Crist, and the Agency for Health Care Administration (AHCA).
http://www.myfloridarx.com/ (this site tracks the prices of the 100 most commonly prescribed drugs in Florida.)
Steve Wilson’s report on WXYZ.com, Detroit, Michigan
http://www.wxyz.com/wxyz/ ys_investigations/article/ 0,2132,WXYZ _15949_2635151,00.html
Steve Wilson’s Generic Drug Price Comparison Chart:
http://web.wxyz.com/extras/ 040205-drugchart.html