It might surprise you to learn that your doctor usually has no idea how much you\u2019ll pay for your prescription medication. The information doesn\u2019t appear in medical journals, and asking a drug rep usually brings an evasive \u201cOur product is no more expensive than other medications in its class\u201d or \u201cIt\u2019s covered by your patient\u2019s insurance.\u201d<\/p>\n
The reason for this is obvious. If physicians knew the price of many drugs, they might be reluctant to prescribe a medication so expensive it causes a patient to forego a few meals every month.<\/p>\n
Americans pay the highest price on the planet for prescription medications because our government won\u2019t negotiate with pharmaceutical manufacturers. The US is a cash cow for the multinational pharmaceutical industry, whose profits are enormous.<\/p>\n
But drug store chains are little better. Their profit center isn\u2019t in shampoo, cigarettes, or tacky electronics. It\u2019s in the pharmacy.<\/p>\n
Here\u2019s why: for cost-saving reasons, insurance companies prefer to pay for drugs that have shifted over to generic equivalents (obviously, they don\u2019t want to pay for the high-price brand-name drug). But when a drug does go generic, the pharmacies can charge you exactly what they want. And although they\u2019ll charge you somewhat less than the brand name, their wholesale cost of a generic is so low that you\u2019d be astonished at their profit. So the best way to describe their charge to you is \u201cthrough the nose.\u201d<\/p>\n
Here\u2019s one quick example:
\nYesterday, I needed six capsules of amoxicillin, an antibiotic that went generic decades ago. At most, it should cost about $2.00. If I used my health insurance, the pharmacy could collect my co-payment ($15.00) AND bill my insurer for an additional $7.00. Therefore, on capsules that cost the pharmacy less than a dollar (wholesale), they could earn $22.00. By opting not to use my insurance I \u201conly\u201d paid $12.00. Get the picture? Even jewelry has a lower profit margin.<\/p>\n
Here\u2019s another example:
\n\u2022 The top cholesterol lowering medication is Lipitor, not available generically. One month\u2019s supply of 10-mg Lipitor costs about $80.00.
\n\u2022 If your doctor were to switch you to the generic version of the similar drug Pravachol, the price drops only to $60.00 (if your doc doesn\u2019t check \u201cgeneric okay,\u201d the price of brand-name Pravachol is a steep $93.00).
\n\u2022 This $60.00 might look cheaper than $80.00 or $93.00 until your check some of the pharmacies in Canada, where the price is a mere $26.00.<\/p>\n
Are the drugs the same? Is the generic Pravachol from Canada the same as the generic Pravachol at your local drug store? Yes. Is the government lying to you when it tells you the Canadian drugs could be counterfeit? Let\u2019s just say the pharmaceutical industry makes immense donations to politicians. Some politicians are merely repaying the debt owed for those donations.<\/p>\n