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April 12, 1996 - Image 46

Resource type:
Text
Publication:
The Detroit Jewish News, 1996-04-12

Disclaimer: Computer generated plain text may have errors. Read more about this.

'4111161111.1101110110. 11111111000k
-,

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DRUG PRICES page 45

different capabilities of pur -
chasers, the statement con-
tinued.
Rep. David Gubow, D
Huntington Woods, is a co-
sponsor of the legislation,
which could be taken up by
the Health Policy Commit-
tee as early as this spring.
It would not affect generic
drugs.
Rep. Hammerstrom said
independent pharmacies fill
89 percent of all outpatient
drug prescriptions, in effect
"subsidizing" the recipients
of drug discounts. In the
meantime, for some pre-
scription drugs they pay
400 to 1,000 percent more
for the same medications.
According to McKesson,
a San Francisco distributor
of wholesale pharmaceuti-
cals, community pharma-
cies pay $134.38 per 1,000
tabs of Slow-K TB, a blood
pressure medication Ms.
Ainbinder takes, while hos-
pitals, HMOs and mail or-
ders pay $7.89 for the same
quantity and dosage. Di-
lantin Kap, an anti-convul-
sant, costs independent
pharmacists $15 per 100
tabs. Hospitals, HMOs and
mail orders pay $5 for the
same.
The pricing discrepancies
among dozens of other
drugs are equally stagger-
ing.
Profits on prescription
drug sales are low to begin
with. Independent retailers
say their profit on pharma-
ceuticals is between 2 and
3 percent.
"We also read that man- Top: Ruth Lieberman an outrageously
ufacturers' margins are
is lucky she takes
higher price. We
closer to 17 percent," said fewer than a dozen have to pass that on
John Enokian, senior vice
medications
to that cash-paying
president of health services
every day.
customer who has
for Arbor Drugs.
to decide between
A
bove:
Rose
Drug manufacturers pro-
eating for a month
vide the discounts to enti- Ainb inder cuts back and buying pre-
on
medications
to
ties that can and will sell
scription drugs,"
ave money.
their drugs exclusively, he
Mr. Enokian said.
said, explaining that the group of
Yet, Arbor would pass on sav-
drugs, or "formulary" a hospital, ings to customers if the playing
HMO or mail order maintains, field were leveled, he said.
drives market share for a specif-
"The marketplace would force
ic drug. A hospital patient who is us to do it, whether we liked it or
given a certain medication will not," Mr. Enokian said.
continue to use it after his or her
Arbor stores do not rely on pre-
discharge, for example.
scription drugs to remain prof-
The independent retailer can- itable, he pointed out. Otherwise,
not fairly compete with the hos- they would end up in bankrupt-
pital or mail-order pharmacy, cy like many other pharmacies.
which paid cut-rate prices for the
When Barry Sternberg opened
medication and can sell it for less, A&M Pharmacy in Detroit 17
he said.
years ago, at least six other near-
"The cost differences are so by independent pharmacies
huge that it's almost mind bog- thrived. Today, only two survive,
gling. The folks who are paying including his.
cash, who have no insurance cov-
He said pharmacists always
erage, are typically the aged — knew about discriminatory pric-
the Medicare class — the indigent ing practices by manufacturers,
or the working poor. Because of but accepted the explanation that
this discriminatory pricing, the hospitals were getting a better
manufacturer has forced the com- price because they were nonprof-
munity to accept their product at it and noncompetitive.

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