GlaxoSmithKline restores Rx discounts for low-income seniors

A drug-pricing roadblock that prompted two major drug companies to cut back on the discounts they promised to cash-strapped seniors seems to have been removed.

Following a clarification of its interpretation of drug-pricing rules by federal officials, drug manufacturer GlaxoSmithKline announced late Wednesday that it is restoring its original savings level offered on its medicines through the Together Rx card program. In addition, the company will provide a check to eligible cardholders in an amount equal to the difference between the program’s original savings level and the amended savings level, if they purchased GSK medicines with the card beginning Oct. 1.

Bristol-Myers Squibb also raised the prices it offers in the Together Rx discount card program. It is unclear at this time if BMS has restored its original savings level.

GSK and BMS announced their decision to cut back discounts at the top of the month, citing concern that federal officials may demand similar discounts for the government Medicaid program.

The move was a slap in the face for the industry, which is working to provide low-income seniors with discounts on prescription drugs.

"The people who will ultimately pay the price are the patients," Craig Fuller, president and chief executive officer of the National Association of Chain Drug Stores, stated in his weekly Monday Morning newsletter earlier this month. "Meanwhile, community pharmacists are put in the uncomfortable position of having to explain to needy seniors why a medication that in September may have cost them $15 will in October cost them $59."