One Reason Drug Costs are High: Price-Fixing

The subtitle to this post could be, "and it's not the kind of price-fixing you've got in mind." Most likely you're thinking about price-fixing of the high-cost, non-generic drugs (as in, those evil drug companies, boo, hiss), but that's not the subject of this post. It's about price-fixing on the low end, meaning that four-dollar generic drugs cost more. And it's the government's fault for making it a LAW in my state. Here's the story.

When Mr. Angst lost his job, we also lost our health insurance (which will be the subject of some future posts, along with tips on how to find afforable coverage). Because we are both over 55 but under 65, affordable, decent coverage is hard to find. We managed to land something called the "basic and essential plus plan" that covers catastrophic health crises and their treatment, but little else. However, because most of the drugs I take are generics, I was smugly looking forward to paying only four dollars per drug per month at the pharmacies in the area that compete with Wal-Mart.***

So, imagine my dismay when I picked up two of my prescriptions recently and discovered I had to pay nine dollars for each, not four. Why? Because the price is set by state law. No one in New Jersey is allowed to sell those two drugs at less than nine dollars for a month's supply.

That is price-fixing, pure and simple. That is what happens when drug companies are allowed to lobby the government, and your legislators sell you out to the lobbyists, no doubt in exchange for campaign contributions. There's no damned good reason why I shouldn't be able to pay only four dollars for those generic drugs if private companies want to sell them to me for four dollars!

Remember this story the next time you hear politicians claiming they're on your side when it comes to "affordable health care choices." It's nothing but BS. The consumer always pays the price--and pays, and pays.

Sharona

***I have fibromyalgia, as well as some bad genes when it comes to conditions that can only be controlled with prescription drugs. All non-drug solutions have already been tried, BTW, and have failed. I go to three different pharmacies, including Wal-Mart, to get all but one of my drugs at the lowest available price.

My Favorite Two Resources for Frugality

Without further ado, here are my two favorite resources:

1. The Dollar Stretcher. This free ezine is the only one I subscribe to, with the exception of the twice-weekly Tips that also are produced by the same people. I almost always learn something new, and they have never sent me one piece of marketing info or ads. I've been subscribing to them since 1997 (they began in 1996). Their web site contains tips and research on almost anything frugal that you'd like to know.

2. The Complete Tightwad Gazette (available at most online bookstores). A woman in Maine ran this phenomenal newsletter from 1990 to 1996, and you can read every word of it in this huge book. I've tried many ideas from her book, and they have saved us a lot of money. I must warn you, she includes some ideas that a lot of people would find extreme, but you can take and choose--no one says you have to start Dumpster-diving for food behind the grocery store (one of her columns) if you don't want to. Simply read it with an open mind. I re-read my copy cover to cover at least once a year.

Do you have favorite resources or topics you want addressed on this blog? If you'd like, share them in the comments section of the blog. I want to hear from you.

Finally, I've decided to post money-saving tips each week. Some of them may not be new to you, if you've been practicing frugality for a while, but I feel the need to include tips for all levels of penny-pinchers. Education is part of the reason I started the blog. I plan to begin the weekly tips later this week.

For now, here's a fairly basic one that can save you money if you're a person with longer hair. Regardless of the shampoo you use, cut it with plain water up to fifty percent, using an empty shampoo bottle to store your fifty-fifty mix. Shake it well. It will be ready to use the next time you wash your hair. I promise you, your hair will get just as clean, and you'll save money.

As for conditioner, if your hair needs it, work in as small an amount as possible, then use a big-toothed comb to comb out tangles before you rinse. You'll be surprised how much easier it is to deal with your hair afterwards. I have longish hair that is brittle near the ends from too much former coloring, and this technique saves me both money on conditioner and aggravation with my hair when I comb it out after my shower.

Risk on Crack

I was recently watching CNBC’s “Fast Money” with Mr. Angst when one of the analysts depicted the doings of all those who screwed our capitalist system (with MBS, CDS, and, last but not least, BS), as “risk on crack”.

Risk on crack. That’s our life right now, because Mr. Angst lost his job a month ago, and with recession breathing down our collective necks, his odds for a new job appear to be slightly higher than the proverbial snowball in hell's chances of remaining frozen.

But this blog will not be a bitchfest. Instead, I’m going to highlight how we manage to struggle on, with lots of ideas and tips for you that address the fine art of living on less. I’ll also mix in some palatable schooling on economics, finance, investments, risk, and Wall Street, for anyone who doesn’t know a CDS (credit default swap) from CDs (certificates of deposit).

Political commentary will appear hither and yon, because I can’t talk economics without pointing out exactly how screwed up things are right now, and who the likely culprits are. Sadly, it's a long, long list. As Lily Tomlin said, “things are going to get a lot worse before they get worse.”

Finally, one thing you will not find in this blog is whining for more entitlements from Uncle Sugar. I’m disgusted with many of the boomers who, now that they’re nearing retirement, want as much “free” money and medical care as they can scarf up. I’m not talking the destitute–I’m talking folks with one-plus million in their IRAs and 401Ks who feel entitled to trash our children’s (and our country's) future just so they can use Social Security to pay the mortgage on their vacation home. And you can be damned certain we’re not talking Baltic Avenue when it comes to their addresses. (I realize the Monopoly reference may be over the heads of anyone who didn’t grow up with this board game.)

That’s it for now. Go enjoy your weekend already. I'm lightening up just thinking about a cup of hot tea and a good book and time with Mr. Angst.