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.