Finding the Holy Grail of Drug Pricing

Finding the Holy Grail of Drug Pricing
Joy Wallace, BSPharm

The cost of prescriptions continues to rise, but consumers have a number of ways to save, including purchasing their medications by mail, switching to generic drugs, and even comparing manufacturers' prices. The key is to shop around, ask lots of questions and use the resources available.

Spending on prescription drugs in the U.S. has soared, climbing to $216.7 billion in 2006 from $40.3 billion in 1990, according to a September report by the Kaiser Family Foundation. The average retail prescription price climbed to $69.91 in 2007 from $35.72 in 1997. At the same time, more of the cost has been shifted to consumers, even if they're insured.
Coverage Shrinks

"What we're seeing is less-generous coverage than in previous years that plays out in higher costs, higher prices," says Juliette Cubanski of the Kaiser Family Foundation.

Fortunately, there are lots of ways to save on prescription drugs. The place to start is with your choice of insurance company or plan. Ideally, you should find out about prescription benefits, especially if you take a number of medications, during enrollment periods. Medicare beneficiaries can switch their prescription-drug coverage between Nov. 15 and Dec. 31.

"People should really look at their current coverage and look at how their plan is changing in 2009," says Ms. Cubanski. "It's not just the premium; it's whether the plan covers the drug they're taking, and what they charge for them."

Once you choose your coverage, the next place to find savings is at the doctor's office. Ms. Cubanski encourages consumers to ask their doctors whether they need all the prescriptions they take. Also find out whether your doctor could prescribe a less expensive brand or a generic. And ask your doctor and pharmacist for samples.

Shop Around

You can save a lot by comparison-shopping among pharmacies and other stores. A growing number are following Wal-Mart's example and offering some generics for as little as $4.

There are a number of useful Web sites that can help with comparison-shopping. The site www.destinationRx.com lets you compare prices and suggests generic substitutes that you could run by your physician, says Barbara Gibson, a spokeswoman for the site. Check www.Rxvouchers.com for coupons you could use on medications.

Another way to save is through bulk purchases from mail-order pharmacies and online retailers, especially if you have a chronic illness. Typically, the bigger the quantity, the more you'll save.

Assistance Programs
Numerous assistance programs are available through states, nonprofits and drug companies. The best way to find out what you are eligible for is by contacting the Partnership for Prescription Assistance at 888-4PPA-NOW (888-477-2669) or www.pparx.org. It has a separate Web site -- http://kids.pparx.org -- for information on programs for children.

PPA helps uninsured or financially struggling patients get access to about 475 prescription assistance programs, which typically are free or very low cost. Patients provide basic information about their income and medical needs. The center then mails them applications for programs they may be eligible for. Those applications typically require proof of income and a doctor's signature. Most people receive the medications within three to five weeks after applying

Information for this article came from Wall Street Journal Health

Courtesy of www.diabetesincontrol.com