October 2006
Some Medicare drug prices are higher than retail
Some seniors may be paying more for prescription drugs under Medicare Part D than they would if they had no insurance and
bought their medication at retail pharmacies, according to a new report by Consumers Union.
The report surveyed full-cost prices for six top drugs, including Lipitor and Zoloft, in all 44 Medicare Part D plans in Broward County, Florida. Researchers compared the prices with those found at retail pharmacies and with prices the Department of Veterans Affairs pays when it purchases prescription drugs.
Millions of people initially helped by the new Medicare Part D drug benefit will find themselves shouldering the full costs of their medication this year. A standard Medicare Part D plan covers the bulk of a beneficiary's drug expenses, but only until spending reaches a total of $2,250. Then coverage is temporarily suspended in what is known as the coverage gap or "doughnut hole" until the beneficiary has spent $2,850 of his or her own money paying full cost for drugs.
According to the report, the lowest retail price undercut Part D's full-cost price for the six drugs 80 percent of the time. In some cases the price discrepancies were significant: The lowest retail price for a 30-day supply of Zoloft 100mg was $77.72 at a Sam's Club, 23 percent lower than what was charged by the highest Part D plan's full-cost price at $101.01.
Consumers Union supports bills in Congress that would allow Medicare to use its buying power to negotiate with drug companies for lower prices. The VA already does so, and its prices for the six drugs were 54 percent lower than Medicare Part D plans.
For the full report, and more information on what you can do, go to www.consumersunion.org. Note that since several of the drugs included in our analysis are also available as lower-cost generics, requesting the generic may also provide additional savings.
The report surveyed full-cost prices for six top drugs, including Lipitor and Zoloft, in all 44 Medicare Part D plans in Broward County, Florida. Researchers compared the prices with those found at retail pharmacies and with prices the Department of Veterans Affairs pays when it purchases prescription drugs.
Millions of people initially helped by the new Medicare Part D drug benefit will find themselves shouldering the full costs of their medication this year. A standard Medicare Part D plan covers the bulk of a beneficiary's drug expenses, but only until spending reaches a total of $2,250. Then coverage is temporarily suspended in what is known as the coverage gap or "doughnut hole" until the beneficiary has spent $2,850 of his or her own money paying full cost for drugs.
According to the report, the lowest retail price undercut Part D's full-cost price for the six drugs 80 percent of the time. In some cases the price discrepancies were significant: The lowest retail price for a 30-day supply of Zoloft 100mg was $77.72 at a Sam's Club, 23 percent lower than what was charged by the highest Part D plan's full-cost price at $101.01.
Consumers Union supports bills in Congress that would allow Medicare to use its buying power to negotiate with drug companies for lower prices. The VA already does so, and its prices for the six drugs were 54 percent lower than Medicare Part D plans.
For the full report, and more information on what you can do, go to www.consumersunion.org. Note that since several of the drugs included in our analysis are also available as lower-cost generics, requesting the generic may also provide additional savings.
