ALBUQUERQUE—Uninsured
consumers in Albuquerque are charged 76 percent more for prescription drugs
than the best available market prices, according to a survey
released today by NMPIRG. The group criticized the failure of Congress
to enact adequate reforms, urging New Mexico to expand its drug buying pool,
Senior Rx.
“When 45 million uninsured Americans go it alone at the drug store, they
pay the price—often twice as much as the federal government pays when it
buys the exact same drugs for federal agencies and programs,” said Ray
Prushnok, consumer advocate with NMPIRG. “Worse, uninsured consumers are
charged up to six times more for prescription drugs purchased from American
pharmacy than they would pay for the exact same prescription at a Canadian pharmacy,”
he continued.
Late last summer, NMPIRG and state PIRGs across the country surveyed nearly
500 pharmacies in 19 states and Washington, DC in order to determine how much
more uninsured consumers pay for 12 commonly prescribed medications than federal
government—one of the pharmaceutical industry’s “most favored”
customers. While many previous studies have focused on drugs commonly prescribed
to senior citizens, NMPIRG’s study examined the prices consumers pay for
a range of prescription drugs widely used by Americans under 65—from an
antibiotic used to treat temporary acute infections, to a long-term medication
used to reduce the risk of heart attack.
Among the key findings of the report were the following:
Albuquerque Findings:
- On average, uninsured consumers in Albuquerque are charged 76 percent more
than the federal government for 12 common prescription medications
- Uninsured consumers in Albuquerque pay 77 percent more for Zithromax—the
most commonly dispensed antibiotic in America—as the federal government
pays for the same medication. Zithromax is an antibiotic prescribed to treat
various bacterial infections, including pneumonia.
- On average, uninsured consumers in Albuquerque are charged 103 percent more—more
than twice as much—for 9 drugs purchased at their local pharmacy, than
they would pay if they purchased the same 9 drugs from a Canadian pharmacy.
Nationally:
- Uninsured Americans pay 78 percent more on average for 12 common prescription
medications than the federal government. The price differences ranged from 41
percent more for Ambien to 162 percent more for Synthroid.
- Many of the drugs featured in the PIRG survey treat chronic conditions –
meaning that even small savings add up quickly. An uninsured person regularly
taking Allegra to control their allergies, for example, would pay on average
$1120 for a year’s supply of Allegra. The government, on the other hand,
would pay only $657 for the same quantity of Allegra – a savings of $463.
- Uninsured consumers, on average, pay 105 percent more at an American pharmacy
than at a Canadian pharmacy, more than twice as much for 9 common prescription
medications. The price differences ranged from 44% for Norvasc to 530 percent
for Premarin.
- An uninsured woman would pay on average $465 for a year’s supply of Premarin
-- a necessary hormone treatment for millions of women. A woman purchasing her
year’s supply of Premarin from a Canadian pharmacy would pay $74—she
could save $391 dollars a year by purchasing her Premarin from Canada.
“HMOs and the federal government use their buying power to negotiate better
prices for the drugs they purchase,” continued Prushnok.
“Unfortunately, uninsured Americans have no one doing the same on their
behalf, so uninsured Americans struggle to pay for needed medical treatment.”
NMPIRG urged Congress to pass the Dorgan-Snowe bill to legalize prescription
drug importation from pharmacies in Canada and other countries with regulatory
systems similar to the U.S. “Despite the growing popularity of prescription
drug importation, Congress failed to pass bipartisan legislation giving 45 million
uninsured Americans access to low-cost prescription drugs,” said Prushnok.
“New Mexican consumers need immediate price relief from the high cost of
prescription drugs.”
NMPIRG urged state policymakers to enact state policies to lower the price of
prescription drugs, such as:
- Expanding our prescription drug-buying pool, Senior Rx, to allow businesses,
state agencies and uninsured individuals to use their combined buying power
to negotiate lower drug prices (a discount is currently available to all New
Mexicans 65 and older, regardless of income);
- Restricting drug company marketing to doctors; and
- Establishing programs that compare similar, competing drugs so that consumers
and state programs have the information needed to purchase the cheapest, safest,
and most effective drugs.
“Solutions to dramatically lower the cost of prescription drugs abound;
it’s time to fight back against the drug companies and pass some laws to
lower the price of prescription drugs,” concluded Prushnok “Otherwise,
New Mexican consumers will keep on paying the price.”
