Shopping for Drugs: 2004
Table of Contents
- Executive Summary
- Introduction
- Comparing Prices
- Therapeutic Drug Substitution
- Bulk Buying
- Pill Splitting
- Generic Drug Substitutes
- Switching to Over-the-Counter Drugs
- Weighing the Cost and Benefits of a Drug
- Case Studies: Price Comparisons for Specific Drugs
- Buying Drugs Abroad
- Special Opportunities for Seniors: Medicare Discount Drug Cards
- Financial Assistance to Lower Drug Costs
- Conclusion
- Notes
- Appendix
- About The Author
Special Opportunities for Seniors: Medicare Discount Drug Cards
“Seniors can save more using their drug discount cards.”
The new Medicare-approved prescription drug card is a valuable tool for seniors. Although the firms offering the cards may charge an annual enrollment fee of up to $30 per year, many are free. In most cases a senior can switch cards once a year, although they can switch more frequently under certain circumstances. 116 These cards offer discounted drug prices at area pharmacies and by mail. However, a benefit far greater than the discounts themselves is the way the cards help seniors shop for the best prices by using the Internet. For each participating card, the Web site Medicare.gov tracks prescription drug prices at pharmacies across the country. With a few keystrokes at a computer terminal, seniors can easily identify the pharmacies in their area offering the best deals on the drugs they take. 117 The Web site also provides information on possible therapeutic substitutes that cost less — including the annual savings. To use this feature, seniors enter their current medications and monthly costs, then select the tab “more ways to save.” [See the sidebar, “How to Use Medicare’s Drug Card Web Site.”]
By using smart shopping techniques and the Medicare.gov Web site, seniors can reap the greatest savings from their new drug benefits. [See the sidebar “Seniors’ Checklist for Saving Money on Drugs.”]
“Seniors can compare drug prices at Medicare.gov.”
Prices Vary Across Cards. Prices for drugs vary based on the specific drug card, so seniors will want to compare benefits before selecting a drug card. For example, a survey of Dallas pharmacies found that:
- Using the EnvisionRx Plus card, the price for 30 tablets of 20mg Fluoxetine (for depression) ranges from $4.28 to $4.78 at Dallas-area retail pharmacies.
- Using the MedImpact card or the InStil Health Solutions card, the retail price ranges from $9.57 to $77.94.
- Of the 30 plus participating cards accepted in the area surveyed, almost half offered 30 tablets of 20mg Fluoxetine at prices that ranged from $61.56 to $76.10.
The same store may have very different prices for a drug depending upon which Medicare discount card a senior uses.
- A senior shopping in many Dallas-area Eckerd and Kroger pharmacies will pay $76.60 for 30 tablets of 20mg Fluoxetine if the card presented is MedCare USA.
- However, the same pharmacies charge only $4.78 to those holding the EnvisionRx Plus card.
- Indeed, for seniors with the right card the lowest price for a month’s supply of 20mg Fluoxetine was $4.28 while the highest was $77.44 — or 18 times as much.
Prices Vary across Stores Using the Same Card. Once they have selected a card, seniors should also consider which pharmacy to patronize, since prices can vary substantially. For example: 118
- With the MedCare USA card, a senior would pay $76.60 for 30 tablets of 20mg Fluoxetine at Dallas-area Eckerd or Kroger pharmacies.
- Using the same card, a senior would pay $10.57 at Target pharmacies.
Mail Order Prices Vary by Card. For chronic ailments, seniors may want to consider the potential savings from bulk buying, using the mail order option featured by many discount cards. Mail order prices also vary widely by card. For instance:
- Using the EnvisionRx Plus card, a senior can mail-order 90 tablets of 20mg Fluoxetine for $5.35 at the Rite Aid Pharmacy in Swedesboro, New Jersey.
- Yet, for consumers using the MedImpact card or the InStil Health Solutions card, mail order costs $210.19 for 90 tablets.
- Among mail order pharmacies, prices for Fluoxetine vary by a factor of 41 to 1.
The Medicare.gov Web site is a powerful tool to find the lowest drug prices in any area. But it has another important effect. This Web site also creates transparency in pricing between competing pharmacies, since seniors can quickly identify drug stores with excessive markups. It provides an incentive for drugstores to do their own comparisons to stay competitive with other pharmacies.
