Generic Advice

For most people, it's a given that generic drugs are vastly cheaper. However, according to a new article in the Wall Street Journal, this ain't necessarily so:

"At a time when policy makers are searching for ways to cut health-care costs, generic drugs are often viewed as one of the most straightforward solutions. But...prices can vary wildly, and may not be nearly as cheap as expected. Generics of a number of...notable drugs that came off patent recently -- including the antidepressant Zoloft, the antibiotic Zithromax and allergy drug Flonase -- have...so far failed to deliver big savings in many cases."

The article noted how the prices for the generic version of widely-prescribed Zocor, a cholesterol-lowering drug that lost its patent protection last year, were not significanly lower at major drug chains like Walgreens and CVS. 30 tablets of a 20-miligram dose cost over $100 at both places, whereas Sam's Club had it available for $6.97!

Why? Well, of course, the drug stores note that they make most of their profits through prescription drugs. I think it's telling that many of the stores contacted by the reporter changed their prices or said they would be reviewing them, no doubt out of embarrassment.

Of course, for insured people who benefit from getting the lowest co-pays for generic drugs, this isn't a noticeable problem. Insurance companies get discounts for the drugs that stores do not. It's the 46 million uninsured Americans who potentially suffer. The article suggests that people research their options online first, then call to verify the prices listed.

In other words, just because something is generic, doesn't mean it's cheap.