Common assumption about prescription drug prices can cost you
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SEATTLE -- A trip to the doctor's office brought a shock for Summer Shaw. Not by the diagnosis, but when she went to get her prescription filled.
Her doctor wrote up a 60 day supply of pills. Her Walgreens pharmacist gave her a 30 day supply that cost $68.
"My insurance only covered so much, so I just paid for it," Summer said. "I was like, well I need it. I need to use it, so I'm just going to pay for it."
When the pills ran out, Summer transferred her prescription to Fred Meyer. This time, she got all 60 days for just $8.
"Huge! I mean I was flabbergasted!" she said of the difference. "I was under the impression it was all the same price, they couldn't charge you any different. It's the medication. I always thought the brand of the medication set the price. That's what I was under the assumption of."
It's a common assumption that can cost you money.
Like everything you buy, you can shop around for prescription drugs.
Surprised? So was Summer's physician, Dr. Linda Petter.
"It was a rude awakening. And I was angry and I was frustrated," Dr. Petter said. "And I thought, 'how can this be?' "
Dr. Petter stumbled across the problem after getting a prescription filled for her husband. The price seemed high.
"It was by accident I found this out. And the more investigation I did, I realized it was much more widespread. And in fact if it was happening to me, it was definitely happening to my patients," she said.
The Problem Solvers put that theory to the test. We had prescriptions for four women who were getting the same three drugs, all covered by the same health insurance. They fanned out to different pharmacies.
Across the board, the nasal spray Fluticasone was $15.
But the consistency ended there.
Cephalexin, an antibiotic, was $4 at Fred Meyer, $6.99 at Costco, $14.85 at Walgreens and $15 at Rite Aid. And remember, all the women have the same health insurance coverage.
Things got more complicated with prescriptions for a 90 day supply of the anti-depressant Paroxetien. Fred Meyer charged $10. It was $15.99 at Rite Aid.
Both pharmacies filled the entire 90 day prescription.
But Costco and Walgreen's only bagged up a 30 day supply. Costco charged $12.86 and Walgreens charged $15.
Why so different? Pharmacies don't always run your insurance.
Their cash price could be a better deal, and an astute clerk will switch to that to save you money. But how much you save depends on your pharmacy.
Because when it comes to cash, it gets competitive.
Costco's Senior Vice President of Pharmacies Victor Curtis told the Problem Solvers, "I am disappointed we didn't have the lowest cost, but we're always looking for the lower price point in every situation, and this no different."
He said Costco was already shopping around for a supplier who charges less for Paroxetien.
And Walgreens, which was among the most expensive pharmacies in our test and for patient Summer Shaw, said the women could have paid less if they joined the company's Prescription Savings Club.
"More than 2 million people take advantage of our Prescription Savings Club, which offers more than 400 generic medications for a dollar a week," Walgreens spokesman Robert Elfinger said when asked to comment to KOMO News. "The program also offers deep discounts on more than 8,000 brand name and all generic medications and is an attractive option for patients without health insurance or for patients who take medications that are not covered by their health plans. Drug prices for the less than 3 percent of patients who pay cash for all their prescriptions are based on the drug manufacturer's price, other operational factors and local competition."
But when the women picked up their prescriptions, no one at the pharmacy suggested a club membership - which costs $20 a year for an individual.
"It just is appalling to see other companies take advantage of their customers," said Shaw. "It's not right. It's not fair."
Rite Aid spokesman Eric Harkreader says many factors go into drug pricing, "including cost of a location, utilities, the overhead to operate the pharmacy and the professional services that the pharmacist provides Just like a doctor, the pharmacist is there to provide expert advice and answer questions about patients' medications. We monitor our chain drugstore competitors to help ensure we are competitively priced.
Both Costco, Walgreens and Rite Aid all suggested looking for a good price, but also for the place with the best service.
Costco's Curtis said, "It's an advantage to a consumer to shop at one pharmacy that has the whole scope of what you take and can apprise you of negative interactions. That's where you gain the leverage of their professional knowledge."
Her doctor wrote up a 60 day supply of pills. Her Walgreens pharmacist gave her a 30 day supply that cost $68.
"My insurance only covered so much, so I just paid for it," Summer said. "I was like, well I need it. I need to use it, so I'm just going to pay for it."
When the pills ran out, Summer transferred her prescription to Fred Meyer. This time, she got all 60 days for just $8.
"Huge! I mean I was flabbergasted!" she said of the difference. "I was under the impression it was all the same price, they couldn't charge you any different. It's the medication. I always thought the brand of the medication set the price. That's what I was under the assumption of."
It's a common assumption that can cost you money.
Like everything you buy, you can shop around for prescription drugs.
Surprised? So was Summer's physician, Dr. Linda Petter.
"It was a rude awakening. And I was angry and I was frustrated," Dr. Petter said. "And I thought, 'how can this be?' "
Dr. Petter stumbled across the problem after getting a prescription filled for her husband. The price seemed high.
"It was by accident I found this out. And the more investigation I did, I realized it was much more widespread. And in fact if it was happening to me, it was definitely happening to my patients," she said.
The Problem Solvers put that theory to the test. We had prescriptions for four women who were getting the same three drugs, all covered by the same health insurance. They fanned out to different pharmacies.
Across the board, the nasal spray Fluticasone was $15.
But the consistency ended there.
Cephalexin, an antibiotic, was $4 at Fred Meyer, $6.99 at Costco, $14.85 at Walgreens and $15 at Rite Aid. And remember, all the women have the same health insurance coverage.
Things got more complicated with prescriptions for a 90 day supply of the anti-depressant Paroxetien. Fred Meyer charged $10. It was $15.99 at Rite Aid.
Both pharmacies filled the entire 90 day prescription.
But Costco and Walgreen's only bagged up a 30 day supply. Costco charged $12.86 and Walgreens charged $15.
Why so different? Pharmacies don't always run your insurance.
Their cash price could be a better deal, and an astute clerk will switch to that to save you money. But how much you save depends on your pharmacy.
Because when it comes to cash, it gets competitive.
Costco's Senior Vice President of Pharmacies Victor Curtis told the Problem Solvers, "I am disappointed we didn't have the lowest cost, but we're always looking for the lower price point in every situation, and this no different."
He said Costco was already shopping around for a supplier who charges less for Paroxetien.
And Walgreens, which was among the most expensive pharmacies in our test and for patient Summer Shaw, said the women could have paid less if they joined the company's Prescription Savings Club.
"More than 2 million people take advantage of our Prescription Savings Club, which offers more than 400 generic medications for a dollar a week," Walgreens spokesman Robert Elfinger said when asked to comment to KOMO News. "The program also offers deep discounts on more than 8,000 brand name and all generic medications and is an attractive option for patients without health insurance or for patients who take medications that are not covered by their health plans. Drug prices for the less than 3 percent of patients who pay cash for all their prescriptions are based on the drug manufacturer's price, other operational factors and local competition."
But when the women picked up their prescriptions, no one at the pharmacy suggested a club membership - which costs $20 a year for an individual.
"It just is appalling to see other companies take advantage of their customers," said Shaw. "It's not right. It's not fair."
Rite Aid spokesman Eric Harkreader says many factors go into drug pricing, "including cost of a location, utilities, the overhead to operate the pharmacy and the professional services that the pharmacist provides Just like a doctor, the pharmacist is there to provide expert advice and answer questions about patients' medications. We monitor our chain drugstore competitors to help ensure we are competitively priced.
Both Costco, Walgreens and Rite Aid all suggested looking for a good price, but also for the place with the best service.
Costco's Curtis said, "It's an advantage to a consumer to shop at one pharmacy that has the whole scope of what you take and can apprise you of negative interactions. That's where you gain the leverage of their professional knowledge."
It really makes me wonder if these pharmacies that offer the insanely low cost generics are playing the loss leader game with medications. Â Not that it matters all that much to the average consumer but it does make you wonder.
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As for Walgreen's, their pharmacy is the pits. Â Often the most expensive according to this report. Â I've only had to use them a couple of times (Costco is our pharmacy because DH is an employee) but it was wretched. Â Hours upon hours of wait time and rude or clueless techs. Â They must be making a killing in profits with all the money they save on overhead.
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The suggestion of looking around for the best price doesn't work on prescriptions. I have repeatedly asked different pharmacies what my cost would be and have always been told that they can't tell me until I transfer the prescription to them.Â
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In other words, I have to agree to the price before knowing what it is just to get an answer to a basic question: How much?
If you want to really delve into the world of the disconnect between doctors, patients and pharmacists, you've really got to read: http://www.theangrypharmacist.com
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I'll add that I personally know three pharmacists who tell me that this guy has absolutely got it right. And it's pretty funny too, although there is some rather crude language, but that's due to the frustration level these folks face.
How could a Doctor not realize that the prices are wildly different depending on where you buy the medication? Â Medication is their industry. Â I would hope that my Doctor understood their own industry, just like you expect your auto-mechanic to understand the cost of parts for your car.
@Landshark Medication is the pharmacist's world. That's why doctors frequently consult with pharmacists when it comes to patient care.
 @Landshark I would rather have my Dr. diagnose my symptoms and be able to to treat me, rather than to know where to get a medication (that I don't even take) for the lowest price.
I am sick of the pharmaceutical companies capitalizing on "profits" over "care" for the elderly. So many elderly are unable to enjoy their Golden Years due to grossly overinflated costs pertaining to their many prescriptions. Prescriptions in many countries are much less and in the United States corporate driven greed reigns supreme and our government does zero to stop the madness. :(
I wish there was an online tool that gave you the prices of the medications at local pharmacies- something where you could type in the name, dose, and pill quantity and your insurance (if you have it) and get a quick look at who is the cheapest. I have called all my local pharmacies a few times to get the price of the med from them- most don't like it and get snippy but I don't have insurance and dont have extra money to just throw away- I have found in my area Walmart is usually cheapest for what I needed.Â
 @MomOf2 I agree completely. When I was without any insurance, a prescription that cost $35 to $50 at most pharmacies I called was only $4 at Wal-Mart because of their generics program.
some stores have the 90 day-cheap plans, and some don't. I didn't realize Costco "wasn't" the lowball figure. I used to fill all my prescriptions at Costco. Looks like I'm going to be transferring to Fred Meyer.
@chandler Call around to all your local pharmacies first- but try to have everything filled in one place, less chance for a mistake if 2 meds can't be taken together.
 @MomOf2 You are absolutely right on both counts!Â
Having only one pharmacy fill one's prescriptions gives continuity of care, preventing drug interactions caused by multiple medications.
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You will always find a huge difference in prices. And remember, Walgreens, Rite Aid, and Bartells, with all their nice corner drug stores, didn't build those nice stores with sales of toiletries, greeting cards, and seasonal stuff. It's the pharmacies that support those stores.
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I did an extensive study about 10 years ago, tracking the mark-up from generic ingredients - to pharmaceutical company sales price - to pharmacies costs - to pharmacy mark-ups - to consumer prices. Nationally, Costco, by far, had the lowest prices.
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Paroxetine is the generic name for Paxil, THE most expensive marked up drug at the time of my study. At that time the generic ingredients cost $0.10 ( that's 10 cents) for 100 tablets. Between the drug company's mark-up and the average US pharmacy mark-up, the consumer price was $374.00 for a 30 day supply.Paxil, by far, was the rip-off drug of the late 90's and later.
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However, integrated into this formula, are the insurance companies, who often aren't astute enough to determine the difference and COST to fill an on-going prescription for only 30 days, vs. 90 days, even when a physician writes a script for 90 days. Short-term meds, such as antibiotics are a different scenario.
Good for you. I am a person who needs folks like you to protect us. After your show I would like a list if you have one of the best places to go. Also could you look into the people who deny services to VA wives because they have Champ VA insurance. Providence told me they would not take any Champ VA people! I have medicare and can't drive as far as I used to so need a place close to home. It scares me to go on the freeway and my doctor who is wonderful is in Stanwood and I am in Marysville. Thanks so much for your show and the entire network.
 @Mary Kiele For decades, the VA has been able to purchase medications for almost pennies on the dollar, compared to ANY outside pharmacies. That is good for our vets, but it doesn't include private sector pharmacies. Only the VA hospitals and their system get that advantage, not privately-owned pharmacies.To my knowledge, you will need to either go TO a VA hospital, or to the Champ website to sign up for mail-order medications, in order to get the Champ VA prices.
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I hope you have a family member who can help you with this, as it can be daunting and confusing.
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All the best.
Canada, I get $600 of Rx's from Canada for $125! Worth the wait just plan ahead....
Are you sure the difference wasn't one was generic and one was by the actual brand? That usually makes a big difference. Also, consumers need to shop around for Rx's just like they would when buying a television or something. I learned this when working for internet pharmacies up in Canada. Some of the medication costs here is highway robbery and it amazes me how many people have to juggle credit cards or share Rx's because they simply cannot afford it under the current or lack of current medical plan.Â