Newark Star-Ledger Examines Drug Discount Cards Offered by Pharmaceutical Companies

The Feb. 7 Newark Star-Ledger examined the growing number of prescription drug discount cards being offered by drug makers and the debate over whether such plans provide at least a partial solution to the rising costs of medications. Over the past few months, Pfizer, GlaxoSmithKline and Novartis have all introduced discount programs for low-income individuals. GSK has signed up 25,000 people for its Orange Card program, which offers average savings of up to 30% off a drug's retail price. Pfizer's Share Card program allows participants to purchase each of its drugs for $15 a month, while Novartis' Care Card plan offers a 25% discount on the wholesale price of its outpatient drugs. Despite criticism that these efforts are intended to deflect public pressure away from the rising costs of prescription drugs and to switch consumers to a particular drug maker's product, the companies say the programs are solely intended to help the uninsured. "It's not a marketing tool," Jeffrey Thomas, vice president of customer marketing and economic development for Novartis, said, adding, "We were looking at ways to assist the population that doesn't have coverage. This was pretty much a no-brainer." But critics of drug card programs say they offer only minimal savings and merely touch the surface of the problem of rising drug prices. According to some experts, that problem -- at least for the senior population -- will not be addressed until Congress creates a Medicare prescription drug benefit. John Rother, AARP's policy director, said, "There's no question that some people will benefit from one or more cards. But these are really about smart public relations, smart marketing and smart politics -- not lower prices. The companies need to buy as much goodwill as they can while the Medicare debate is under way." As part of his Medicare reform plan, President Bush has proposed letting seniors choose from several discount cards. But drug makers and pharmacies say such a plan would be "unwieldy," the Star-Ledger reports. Michael Polzin, a spokesperson for the pharmacy chain Walgreen's, said, "The discounts would vary widely. It's not clear how the rebates would be set or how reimbursements to pharmacies would be reinforced. And it's just not a true drug benefit" (Silverman, Newark Star-Ledger, 2/7).