Taken to the cleaners by our Pharmasists

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All of us need to fight back!

http://www.wxyz.com/wxyz/ys_investigations/article/0,2132,WXYZ_15949_2617109,00.\

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Consumer Fights Back Against Pharmacy Markups

By Steve

September 26, 2002

Earlier this week, Channel 7 Investigative Reporter Steve clued

us in about little secrets regarding many pharmacies. Steve showed us

how these pharmacies were marking the price of generic drugs way up,

thinking you would never know. Now Steve has the story of one consumer

who heard our report and decided to back.

The price never varies on a bottle of liquor in the state of Michigan

because the state wholesales every bottle, and regulates the retail

price regardless of where you buy it. But when it comes to the price

of generic drugs, there is no regulation. That's how pharmacies can

sell you a generic version of $100 drug for, say, $75. And aren't you

happy to be saving 25 percent?

Happy tell you turn on Action News and learn the drug only cost your

pharmacist a buck or two. It is a practice we found that flourishes

far and wide because, until now, you had no way of knowing the

incredible markups charged by many of the friendly pharmacists you

trust, and the corporations they work for.

" You have to make 1,400 percent profit to stay in business? "

asked a pharmacist at F & M Drugs.

" They don't have to, but that is the American way, " replied Chronda

Spurlin.

" No, you do that. "

" I don't own anything here. "

She just works there, at the F & M drugstore in Southfield, where they

promise generic brands save money. Well, they do, and just who

actually pockets the lions share of the savings at F & M is decided by

the $800 million Canadian Snyder's Drug Company that owns F & M.

Neither F & M, nor any other major drug company would talk about this

on camera.

Since our first reports identified some places we caught taking the

largest markups, prices have dropped at those particular stores. But

Costco remains the price leader, with the absolutely lowest prices on

generics across the board.

Elsewhere, we've seen a few others come close.

ston Pharmacy is small, looks little more like a drive up burger

joint than a drugstore. But aside from just lower overhead, the two

women who run it share a different philosophy about who should save

the most money on generic drugs, a philosophy that bucks what many of

their competitors seem to be thinking.

" I don't need to tell them I'm only paying one or two dollars. I can

charge them $80 and tell them they are still saving money. What's

wrong with that? " asked one of the pharmacists.

" For them there's nothing wrong with that. For us, we want to be able

help the customer, " said Debra Pullen, ston Pharmacy.

" And going for the ultimate price isn't necessarily a daily goal for

us, " said Debra Pullen, ston Pharmacy.

So how does a lone consumer fight back? Take a tip from

Cunningham. When an Action News viewer told this Livonia school bus

driver that she was likely being charged a huge markup every time she

filled prescriptions for a genetic heart medication, she just couldn't

believe her trusted pharmacist at the neighborhood Rite-Aid would do

that.

" I did trust them. That's where I get my regular prescriptions every

month, " said.

" And you were paying $102.99, and come to find out you could pay as

little as? " Steve asked.

" Well, right now, I'm paying $42.69. "

Rite-Aid was, and still is, marking up this particular generic an

estimated 3,612 percent or more. But just marched down and told

the druggist at Rite-Aid she won't stand for being taken.

" He said, I can charge you whatever we want. I said, oh, no, you

can't. I am not going to do it. I said you call corporate, and you get

permission. I want my money back and I want it back within an hour, "

recalled.

" And what happened? "

" I got my money back in an hour. "

Rite-Aid figured the overcharges for the last few months amounted to

$161.10. And with approval of the corporate office, they forked over

cash on the spot.

" I think they were trying to keep me from saying anything or, you

know, telling anybody. "

And now comes the kicker: Rite-Aide refunded $161 for pills prescribed

not for , but for aging boxer, Cinnamon.

Copyright 2004, WXYZ. All Rights Reserved.

See also:

Prescription Drug Price Comparison Chart

http://web.wxyz.com/extras/020925-drugchart.html