Honolulu
Patients often pay
5x more for drugs

Companies' policy on
popular drugs 'victimizes'
seniors, a study says

By Helen Altonn
Star-Bulletin

Honolulu senior citizens and other residents generally pay twice as much for drugs as "favored customers" of drug companies, a congressional study reveals.

Favored customers include large insurance companies, health maintenance organizations and the federal government, according to the study requested by U.S. Rep. Neil Abercrombie (D, urban Oahu).

"It appears that drug companies are engaged in a form of 'discriminatory' pricing that victimizes those who are least able to afford it," the report says.

The differential between retail prices and those charged favored customers for drugs is more than five times greater than the average price differential for other consumer goods in Honolulu, says the study, done by the House Government Reform Committee's Democratic staff.

Abercrombie released the findings today at a news conference attended by about 60 seniors at the Moiliili Senior Center.

"More than one in eight Americans is forced to choose between food and medicine," Abercrombie said. "That's outrageous."

If the problem isn't fixed now, it will become worse since Hawaii's people live longer than anywhere else in the nation, he pointed out.

Industry analysts have recognized price discrimination in the prescription drug market, but the study requested by Abercrombie is the first to show the extent of the discrimination and its impact on Hawaii seniors, the study said.

"Compared to manufacturers of other retail items, pharmaceutical manufacturers appear to be engaging in significant price discrimination against older Americans and other individual consumers," it said.

Jim McElhaney, a pharmacist who owns the Pill Box in Kaimuki, said a Prescription Drug Fairness for Seniors Act co-sponsored by Abercrombie in Congress would give seniors the same kind of discount that bulk purchasers are getting.

For example, it would save $1,663 for a Kaimuki couple who paid $3,782 on drugs in the past year at his pharmacy, he said.

Ten Honolulu pharmacies were surveyed in the study, which investigated five drugs commonly used by older people: Zocor, manufactured by Merck for cholesterol; Prilosec, by Astra/Merck for ulcers; Zoloft, by Pfizer Inc. for depression; Norvasc, by Pfizer for high blood pressure; and Procardia XL, by Pfizer for heart problems.

The difference in prices paid by favored customers and Hawaii seniors ranged from 87 percent to 217 percent and averaged 123 percent, the study said.

It found an even greater price difference for other popular drugs.

The highest price difference -- 1,504 percent -- was for Synthroid, a commonly used hormone drug manufactured by Knoll Pharmaceuticals, the study said.

The average Honolulu senior pays $28 for the same dose of Synthroid that costs the manufacturer's favorite customer $1.75, the study said.

An equivalent dose of Micro-nase, a diabetes treatment manufactured by Upjohn, would cost favored customers $10.05, while seniors paid $54.30 -- a price differential of 440 percent, the study said.

Brian McGlynn, Pfizer director of media relations, said he couldn't comment on the study until he sees the report. But he said Pfizer has a prescription drug program to get medicines to people.

"We support access to pharmaceuticals to all patients who need them."