Prescription Drug Prices Vary Widely Around Arizona, Report from State Attorney General Says

Prescription drug prices in Arizona have increased about 5.2% -- twice the rate of inflation -- since last year, a report from state Attorney General Janet Napolitano (D) found, the Arizona Daily Star reports. The report, similar to one conducted in June, examined prices for 20 different drugs, finding "dramatic" differences in prices among pharmacies statewide. For eight of the 20 drugs, prices at the most expensive pharmacy were at least twice as expensive as the cheapest drug store, the report found. And in one more extreme case, 30 50-milligram tablets of the blood pressure treatment Atenolol ranged in price from $4.97 to $39.80 (Fischer, Arizona Daily Star, 3/1). Of the more than 100 pharmacies the attorney general's office surveyed, the lowest prices were at pharmacies on the Internet, along the Arizona-Mexico border and in Mexico (Bach, Arizona Republic, 3/1). Napolitano said prices along the border are cheaper because of competition with Mexican pharmacies, where drug costs declined 16% last year, according to the report. The total cost for the 20 medications was $1,137 at Mexican pharmacies, compared to $1,419 at border pharmacies and $1,557 in Tucson, Ariz. Statewide, the 20 medicines cost an average of $1,549. The study also found that member discount stores are typically less expensive than chain drug stores, which are in turn less expensive than independent pharmacies. "Independent pharmacies usually lack the bulk buying power of large chain stores and typically are less able to negotiate discounts off of the manufacturer's average wholesale price," Napolitano said. The study is available online.

Legislature Seeks Discounts
In related news, the state Senate Health Committee has scheduled a hearing for March 5 to discuss a plan to have the Arizona Health Care Cost Containment System, the state's Medicaid program, purchase medications directly from drug companies and use its "buying power" to garner discounts. Under the plan, AHCCCS would buy discounted drugs for seniors with incomes up to 400% of the poverty level, or about $35,000 per year for a couple. State Sen. Chris Cummiskey (D) said that the plan could save the state $20 million each year (Arizona Daily Star, 3/1).