UAW’s New Contracts with Big Three Automakers Require Mail Order of Some Prescriptions

The new United Auto Workers contracts with the Big Three auto manufacturers -- General Motors, Ford and DaimlerChrysler -- and their suppliers include a provision that requires union members and retirees to purchase prescription drugs for chronic illnesses, such as diabetes, by mail order, the Detroit News reports. The provision will save the companies, which spent more than $2.5 billion on prescription drugs in 2002, several hundred million dollars per year, according to Larry Wagenknecht, CEO of the Michigan Pharmacists Association. In addition, the provision will reduce out-of-pocket prescription drug costs for union members and retirees because they can contribute one copayment, ranging from $5 to $10, and receive a 90-day supply of a medication. Generally, Michigan pharmacies can provide only a 30-day supply of a medication per copayment, according to Wagenknecht. However, the provision, which appeared in a list of contract highlights released by DaimlerChrysler, "poses a serious threat" to Michigan pharmacies because the state Public Health Code mandates that they cannot sell prescription drugs by mail order, the News reports. Neither company nor UAW officials have made available a complete list of the prescription drugs covered by the mail-order provision, but the type of medications covered, called "maintenance drugs," account for about 40% to 60% of the prescriptions filled by Michigan pharmacies, according to Wagenknecht. He added that the provision "may mean the difference between survival and nonsurvival" for some Michigan pharmacies. In addition to the mail-order provision, the new contracts also promote the use of less-expensive generic medications over brand-name prescription drugs (Egan/Hudson, Detroit News, 10/8).