A recent article in the online wall street journal talked about how generic drug prices vary hugely in the marketplace. It discusses the cost of a generic replacement for Zocor, one of the most commonly taken drugs in the US, used for cholesterol reduction.
As predicted, the price that many insurers pay for generic Zocor has dropped dramatically. But the price that pharmacies charge patients who pay cash remains high in many locations, with wide variations by vendor. At online pharmacy walgreens.com, for instance, the price for 30 tablets of a 20-milligram dose of Merck & Co.’s Zocor is $149.99, compared with $89.99 for simvastatin, the generic version. And last week, the same dose of simvastatin cost $108.99 at CVS’s Web site, compared with $154.99 for Zocor. After a call from a reporter, CVS said it would drop its simvastatin price to $79.99, as part of an “ongoing price analysis.”
To be sure, even for the uninsured, generics still typically cost less than their branded counterparts. And at big clubs such as Costco Wholesale and Sam’s Club, out-of-pocket prices for generics do generally plummet. Simvastatin costs $6.97 for 30 pills of the 20-milligram dose at a Sam’s Club for which the company provided price information.
Read that again – $80 at CVS, $90 at walgreens, $6.97 at Sam’s.
Why?
The Freakonomics Blog has an explanation:
His answer: if a retiree is used to filling his prescriptions at Walgreens, that?s where he fills his prescriptions ? and he assumes that the price of a generic drug (or, perhaps, any drug) is pretty much the same at any pharmacy. Talk about information asymmetry; talk about price discrimination.
Bottom line – if you or your family members are taking generic drugs paid for out of your own pocket – shop around – check the Costco’s and Sam’s Clubs – they can save big (that $90 vs $6.97 was for a 30 day supply!)
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