|
Prescription Profits
Generic drugs are supposed to save you money, right? The Phoenix
channel 5 news team of investigative reporters has uncovered
massive mark-ups on some of the most popular generics. If you're
paying out of pocket- you're really getting pinched.
What your drug store pays for those generics is a closely guarded
secret. But the channel 5 news team, in Phoenix, AZ, convinced
one pharmacist to hand over his list. They then set out to uncover
what you
pay for the same prescriptions. They called 14 pharmacies in
the Phoenix area and priced six commonly used generics.
Here’s
what they found:
- Famotidine - the generic for Pepcid - sells for $106.15 at
Osco, but the wholesale price is just $5.67.
- Hydrocodone - the generic for Lortab – sells for $61.29
at Arrow Pharmacy; the wholesale price is $5.90.
- Fluoxetine
- the generic for Prozac – sells for $287.00 at Basha's,
while the wholesale is only $10.23. That’s a markup of
nearly 3,000 percent.
- Oxaprozin
- the generic for Daypro – sells
for $130.89 at Walgreens. The wholesale price is $21.25.
- Diazepam
- the generic for Valium – sells for $31.49 at
Safeway. The wholesale price is $5.76.
- And
finally, Alprazolam – the generic for Xanax – sells
for $19.99 at Target and the wholesale price is $4.21.
That appears to be a more normal mark up to retail of 4.7
times the wholesale
price.
“
The numbers are staggering,” says Tim Nelson, General Counsel
to Arizona Governor Janet Napolitano. "In some instances
here, this appears to be price gouging." But who's to blame
for the high prices?
Lowell
Sterler, with Arizona's Pharmacy Association, blames insurance
companies for capping the price
they'll pay for
prescriptions. Drug stores, he says, have to boost
what they charge for generics
just to break even.
So, the
channel 5 news team asked Blue Cross Blue Shield of Arizona
if they're to blame for pharmacy
markups.
In a statement,
the
company claims it's spending more to reimburse
drug stores – 10
million dollars more last year than the year before – a
payment they think is more than fair and appropriate.
And what
about the drug stores that quoted those prices? Basha's blames
their price quote on an
outdated computer
system- it
says will be upgraded with accurate prices as
a result of the channel
5 team's investigation. Target sent this statement,
saying, "Target
Pharmacy strives to offer our guests outstanding service and
fair prescription prices. If we find a competitor has a lower
price, we will match it."
The bottom
line is that pharmacies are in fact selling generics for slightly
less than the brand
name drugs,
but not much
less. They base their prices on what the market
will bear.
Unfortunately,
since most patients use their insurance prescription
drug card, they rarely give the cost a second
thought. Perhaps
its time
to reconsider the whole concept. Many patients
are doing just that, because they have found
that natural
alternatives
to
prescription drugs are more effective and
less expensive. Here’s a comparison
look at some of the most popular natural alternatives.
Pepteal – the natural alternative to Pepcid – sells
for $26.50
Optimum Vitality – natural alternative to Prozac – sells
for $26.50
Tranquil Clarity – the natural alternative to Xanax – sells
for $29.95
For more information about natural alternatives to prescription
drugs, please click
here:
|
