Health Care & Prescription Drugs News

ALBUQUERQUE—Uninsured consumers in Albuquerque pay 61.5 more for common prescription drugs than what the drug companies charge the federal government, according to a New Mexico Public Interest Research Group (NMPIRG) Education Fund report released today, entitled, Paying the Price: The High Cost of Prescription Drugs for Uninsured New Mexicans.

“When 46 million uninsured Americans go it alone at the pharmacy, they pay the price,” said NMPIRG Education Fund Associate Lauren Ketcham. “With no one to negotiate lower prices on their behalf, uninsured consumers often face sticker shock when trying to afford medically necessary prescriptions,” continued Ketcham.

In the spring of 2006, NMPIRG Education Fund teamed up with state PIRGs across the country to survey more than 600 pharmacies in 35 cities, including 18 pharmacies in Albuquerque, to determine how much uninsured consumers pay for drugs when compared with prices paid by the federal government, which uses its buying power to negotiate with drug companies for lower prices. These findings were also compared to prescription drug costs in Canada and to a similar study conducted in 2004. Ten drugs were surveyed: Allegra, Ambien, Lipitor, Novasc, Premarin, Singulair, Synthroid, Zithromax, Zyrtec, Lexapro.

While many studies have focused on the impact of high drug prices on senior citizens, NMPIRG Education Fund’s survey examined the prices uninsured consumers pay for a range of prescription drugs widely used by Americans under 65, such as antibiotics, allergy medication, anti-depressants, and cholesterol-lowering medication. This is important because in 2004, at least 18% of New Mexicans lacked health insurance, with 18 to 34 years olds having the highest uninsured rates.

Among the survey’s key findings:

• In Albuquerque, uninsured consumers pay 61.5% more than what the federal government pays for the same drugs, ranking the city the thirteenth most expensive out of the 35 cities surveyed.

• The uninsured in Albuquerque pay more than twice as much for their medication at local drug stores as they would pay at a Canadian pharmacy. The hormone replacement drug Premarin costs 546% more at Albuquerque drug stores than it does at a Canadian pharmacy.

• In 2004, NMPIRG Education Fund released a similar study of prescription drug prices. Looking at the nine drugs surveyed both in 2004 and 2006, the average price paid by uninsured consumers in Albuquerque increased by nearly 15%-- the highest increase for any city surveyed and more than twice the general rate of inflation over the two-year period.

“Hard-working New Mexicans without health insurance or prescription drug coverage are paying full price for their medications—if they are able to afford them at all,” stated Ketcham.

NMPIRG Education Fund advocates for increasing the availability of low cost generic drugs by closing loopholes that allow drug makers to hold on to their patents and tightening oversight of drug makers’ marketing tactics, which drive up demand for the newest and most expensive drugs regardless of effectiveness. They also support creating prescription drug buying pools at the state level to allow individuals (including the uninsured), businesses and the government to use their combined buying power to negotiate lower drug prices with manufacturers.

“Luckily, the state is doing something about this problem. The New Mexico Discount Prescription Drug Program is available to all New Mexicans, with or without insurance, and provides discounts on prescription drugs. Best of all, it’s free, easy to enroll, and offers significant savings on essential medications for New Mexico’s uninsured—an average savings of 13.6% for the drugs we surveyed,” said Ketcham.

Additionally, some New Mexicans may qualify for New Mexico’s MEDBANK program, which provides access to free prescription drugs and prescription drug vouchers.

“Unfortunately, both programs are underutilized. We encourage all New Mexicans to sign up and begin saving today. Beyond this, there are some other basic steps that consumers can take. They should shop around, compare costs, buy generic drugs when possible, and be honest with their pharmacist and doctor so they can determine what less expensive alternatives may be available as well,” concluded Ketcham.

The New Mexico Discount Prescription Drug Program is administered by the New Mexico Department of Aging and Long-Term Services and is operated by Express Scripts. For more information or to sign up, contact 1-866-244-0882 or www.nmrhca.state.nm.us/dpdp. For more information or to see if you qualify for MEDBANK, contact 1-800-432-2080.

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NMPIRG Education Fund’s mission is to provide research and education that leads to the protection of our environment, encourages a fair, sustainable economy, and fosters responsive, democratic government.Paying the Price: The High Cost of Prescription Drugs for Uninsured New Mexicans is available at www.nmpirg.org.