DENVER—Uninsured
Americans pay 60 percent more for prescription drugs compared with the
prices negotiated by the federal government, according to a new
Colorado Public Interest Research Group report released today. The
report surveyed costs in 35 cities across the nation, including Denver
here in Colorado.
“Politicians
have focused on the high cost of prescription drugs for senior
citizens, but this report shows that when millions of uninsured and
underinsured Americans go it alone at the drugstore, they pay the
price,” said Rex Wilmouth, State Director of CoPIRG.
“The
46 million uninsured pay 60 percent more than the federal government
pays for the same drugs. The uninsured pay about twice what they would
pay for he same drugs at a Canadian pharmacy,” added Wilmouth.
“Prescription drug pricing is out of control and puts needed medical
treatment out of reach for too many Americans.”
“Paying
the Price, The High Cost of Prescription Drugs for Uninsured
Americans,” found that the average cost of 10 of the most commonly
dispensed prescription drugs was $77.15 in Denver, Colorado. The
national average cost was $81.31. The report also notes with increasing
prices, Americans spent $252 billion on prescription drugs alone in
2005.
“If you’re uninsured in Denver, you’re paying through the nose for your
prescription drugs,” said Rex Wilmouth. “If we legalized the
importation of prescription drugs, we could cut our prescription drug
costs in half for the drugs we surveyed.”
Among the reports key findings:
•
In Denver, uninsured residents pay nearly 52 percent more than the
federal government pays for the same drugs, ranking the city 33 out of
the 35 cities we surveyed.
•
The uninsured in Denver pay about twice as much at local drug stores
than they would pay for the same drugs at a Canadian pharmacy. One
drug, the hormone replacement Premarin, costs nearly 544 percent more
at a drugstore in Denver than it would at a Canadian pharmacy.
•
Nationally, uninsured Americans pay 60 percent more on average than the
federal government pays for the prescription drugs surveyed.
•
For all 35 cities surveyed, the uninsured were charged twice as much
for drugs purchased at their local drugs stores than they would pay at
a Canadian pharmacy.
• Compared with PIRG’s 2004 survey, the cost of the nine prescription
drugs surveyed increased nearly 80 percent faster than the general rate
of inflation.
“Even
in cities with the lowest average prices, the uninsured pay too much
for their medications,” said Rex Wilmouth. “They pay more than the
federal government pays, and they pay significantly more than they’d
pay at a Canadian drug store.”
CoPIRG had the following policy recommendations:
•
Increase the availability of low cost generic drugs by increasing the
budget for the Food and Drug Administration’s Office of Generic Drugs,
which currently has a backlog of 800 generic drug applications waiting
for approval.
• Establish 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.
• Legalize prescription drug importation. This would provide immediate
relief to consumers, cutting their prescription drugs costs in half.
CoPIRG had the following tips for consumers:
• Use the phone and shop around. Some pharmacists offer discounts to those without insurance coverage.
• Use the Internet to find out the average retail cost of medications.
• Buy generic drugs, which are almost always less expensive than brand name counterparts, whenever possible. .
“Savvy
consumers will use the phone and shop around for the lowest-priced drug
store,” said Rex Wilmouth. “When some pharmacists found out our
researchers didn’t have insurance, they offered discounts.”
