CHICAGO—Uninsured consumers in Chicago pay 51 percent more for common prescription drugs than what the drug companies charge the federal government, according to a new Illinois Public Interest Research Group (PIRG) report released today.
“When 46 million uninsured Americans go it alone at the pharmacy, they pay the price,” said Illinois PIRG State Director, Brian Imus. “With no one to negotiate lower prices on their behalf, uninsured consumers often face sticker shock when trying to afford medically necessary prescriptions,” continued Imus.
In the spring of 2006, Illinois teamed up with state PIRGs across the country to survey more than 600 pharmacies in 35 cities to determine how much uninsured consumers pay for 10 drugs when compared with prices paid by the federal government, which uses its buying power to negotiate with drug companies for lower prices. While many studies have focused on the impact of high drug prices on senior citizens, Illinois PIRG’s survey examined the prices uninsured consumers pay for a range of prescription drugs widely used by Americans under 65, such as antibiotics, allergy medication, anti-depressants, and cholesterol-lowering medication.
Among the survey’s key findings:
• In Chicago, uninsured consumers pay 51 percent more than what the federal government pays for the same drugs,
• The uninsured in Chicago pay almost twice as much for their medication at local drug stores as they would pay at a Canadian pharmacy. The hormone replacement drug Premarin costs 518% more at a drug store in Chicago than it does at a Canadian pharmacy.
• In 2004, Illinois PIRG released a similar study of prescription drug prices. Looking at the nine drugs we surveyed both in 2004 and 2006, the average price paid by uninsured consumers in increased by 80% faster than the general rate of inflation over the two-year period.
• Nationally, based on the 35 cities we surveyed, uninsured Americans pay 60 percent more on average than what the federal government pays for same drugs and twice as much as they would pay at a Canadian pharmacy.
“It is an injustice when hard-working Americans without health insurance or prescription drug coverage pay full price for their medications,” said Megan Meagher, Health Care Justice Assistant Director at the Campaign for Better Health Care. “When state and federal governments use their purchasing power on behalf of consumers, we will see fairer drug prices for everyone.”
Illinois PIRG called for increasing the availability of low cost generic drugs by closing loopholes that allow drug makers to hold on to their patents and tightening oversight of drug makers’ marketing tactics, which drive up demand for the newest and more expensive drugs regardless of effectiveness. Illinois PIRG also supports creating prescription drug buying pools at the state level to allow individuals (including the uninsured), businesses and the government to use their combined buying power to negotiate lower drug prices with manufacturers.
“While Congress drags its feet, state legislatures have passed innovative policies to help uninsured consumers afford their prescription medication,” said Imus.
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Illinois PIRG is a state-wide, non-profit public interest research and advocacy organization with 20,000 citizen members across Illinois.
