Drug price disparity compounds burden for the uninsured

Lack of negotiating power means Americans without health insurance pay more than others to fill their prescriptions.

By Joel B. Finkelstein, amednews staff. Aug. 4, 2003.

Washington -- The higher prescription drug prices paid by uninsured Americans often means that even if physicians' services are discounted or free, health care remains out of reach for those without coverage.

Uninsured patients pay an average of 72% more for their prescriptions than the government pays for the same drugs for federal health plan enrollees, according to a survey in 19 states conducted by the U.S. Public Interest Research Group.

"When the 41 million uninsured Americans go it alone at the drug store, they pay the price -- sometimes more than double what government agencies pay to buy the same drugs in bulk for large groups of consumers," said Ed Mierzwinski, the group's consumer program director.

The survey analyzed price data on 10 common prescription drugs, mainly those used to treat patients with such chronic illnesses as AIDS, hypertension, high cholesterol, arthritis and heart disease.

For patients with chronic disease "the percent difference between the retail and discounted prices quickly adds up," the report stated. For example, a year's supply of Zocor in the most inexpensive market surveyed would cost an uninsured patient $1,671, compared with $814 paid by the government.

The survey also showed that drug prices were highest in the Northeast and Middle Atlantic states, slightly cheaper in the Midwest and Mid-South, and substantially less along the rest of the South.

Among the cities surveyed, Baltimore; Washington, D.C.; Philadelphia and Boston had the highest prices, while New Orleans; Denver; Grand Rapids, Mich.; Houston; and Tampa, Fla.; had the lowest prices.

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