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For Immediate Release:
10/21/2004
For More Information:
Deirdre Cummings
Legislative Director
(617) 292-4800


Survey Finds Uninsured Consumers Pay Too High a Price For Prescription Drugs in Massachusetts

BOSTON—Uninsured consumers in Massachusetts are charged on average, more than twice as much—117 percent more—for drugs purchased at their local pharmacy than they would pay if they purchased the same drugs from a Canadian pharmacy, and 89 percent more than the federal government pays according to a survey released today by the Massachusetts Public Interest Research Group, (MASSPIRG).

Consumer groups, physicians, and lawmakers criticized the failure of Congress and the legislature to enact adequate prescription drug price reforms, and called for the prompt passage of the Prescription Drug Fair Pricing Bill and the Reimportation Bill, two drug price reform bills in Massachusetts which have not passed despite overwhelming support by legislative members and the public.

“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 Deirdre Cummings, MASSPIRG’s consumer program director. “Worse, uninsured consumers are charged up to six times more for prescription drugs purchased from an American pharmacy than they would pay for the exact same prescription at a Canadian pharmacy,” she continued.

Late last summer, MASSPIRG 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 the federal government—one of the pharmaceutical industry’s “most favored” customers. While many previous studies have focused on drugs commonly prescribed to senior citizens, MASSPIRG’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 Massachusetts and national findings of the report were the following:

Massachusetts findings
- On average, uninsured consumers in Massachusetts are charged 89 percent percent more than the federal government for 12 common prescription medications.

This is slightly higher than the national average of 78 percent. The price differences in Massachusetts ranged from 50 percent more for Ambien to 162 percent more for Synthroid.

- Uninsured consumers in Massachusetts pay 87 percent more for Zithromax—the most commonly dispensed antibiotic in America—than 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 Massachusetts are charged 117 percent 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. The price differences ranged from 57 percent more for Norvasc to 533 percent for Premarin.

- Many of the drugs featured in the MASSPIRG 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 $1201 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 $544.

- An uninsured woman in Massachusetts would pay on average $1349 for a year’s supply of Singulair—asthma and allergy medicine. A woman purchasing her year’s supply of Singulair from a Canadian pharmacy would pay $746—she could save $603 dollars a year by purchasing her Singulair from Canada.

"The price gouging and manipulation of the pharmaceutical industry is costing us all, but hitting the uninsured the hardest, literally costing some their lives by keeping medications out of financial reach. I am hopeful that the change of leadership in the House will allow my reform package, which includes fair pricing, discount cards for the uninsured and reimportation programs, which has been passed by the Senate numerous times, to finally pass the House and thus bring real reform to those described in this report," said Senator Montigny, a long time champion of prescription drug pricing reform.

"Our efforts are a prescription for this country's prescription drug pricing woes," said Senator Jarrett T. Barrios (D-Cambridge), lead sponsor of the reimportation bill.

"Uninsured consumers struggling with the high cost of their medicines have been left in the dark by the failure of President Bush to reduce prices and Gov. Romney's refusal to actively support solutions such as Prescription Advantage and bulk purchasing. It’s time to allow residents to use the free market to save thousands of dollars a year in drug costs."

"Day in and day out, my patients report difficulty paying for their medicines, especially the uninsured and the elderly. There's no reason why they shouldn't pay the same discounted prices the federal government and everyone else pays” said Dr. Greg Schwartz, an internist at Massachusetts General Hospital who is a primary care physician."

Isaac Ben Ezra, President of Mass Senior Action Council, said “Massachusetts consumers need immediate price relief from the high cost of prescription drugs. The Rx Fair Pricing bill we all support doesn’t impose price controls but it does require the state to negotiate for lower prices on behalf of its citizens. At the urging of the pharmaceutical industry, Medicare subscribers have been denied this leverage by Congress. Massachusetts should take a different course.”

MASSPIRG urged lawmakers and the Romney administration to enact or implement state policies to lower the price of prescription drugs, such as:

- Establishing prescription drug-buying pools that allow businesses, state agencies and uninsured individuals to use their combined buying power to negotiate lower drug prices, the administration has refused to implement part of the prescription drug buying pool previously adopted by the legislature;

- Restricting drug company marketing to doctors; and

- Requiring state to provide information to consumers about how to purchase prescription drugs from Canada.

“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 Cummings “Otherwise, Massachusetts consumers will keep on paying the price.”

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