Pharma Giant Bridges Gap with Cost Plus Drugs

According to a Gallup poll, close to 40% of adults in the United States have chosen to forgo taking their prescribed medication to save money.

Americans facing the high cost of medications are often forced to make difficult choices to cope with the financial burden. Some individuals resort to skipping or reducing dosages to make their medication supply last longer, despite the potential health consequences. Another strategy is pill splitting, where individuals divide higher-dosage pills in half to achieve the prescribed dosage, as long as it is deemed safe and approved by their healthcare provider.

High medication prices impact a wide range of demographics in the United States. Further, Uninsured individuals often bear the full cost of medications. Moreover, making it difficult for them to afford necessary treatments. Even those with insurance may face high deductibles. As well as, copayments, or limited coverage for certain medications, leaving them underinsured. Low-income individuals struggle to afford medications, particularly if they do not qualify for low-income assistance programs or have inadequate insurance coverage. Additionally, The elderly population, many of whom are on fixed incomes, may be disproportionately affected as they rely on multiple medications to manage chronic conditions.

Individuals with chronic conditions requiring ongoing medication therapy, such as diabetes or asthma, face substantial costs over time. Patients with rare diseases also encounter high medication prices due to limited patient populations and higher development costs. Middle-class individuals can also be impacted, especially if they have high healthcare costs or require expensive medications. Working families may experience financial strain due to high medication costs, particularly when multiple family members require medications or if they face high insurance premiums and deductibles. Ultimately, the impact of high medication prices is widespread, affecting individuals across different socioeconomic backgrounds and age groups.

Why are medications more expensive in the US?

The cost of medications in the United States is influenced by a combination of factors, contributing to their high prices. However, Here are some key reasons why medications in the US are often expensive:

Research and Development Costs: Pharmaceutical companies invest significant resources in the research and development (R&D) of new medications.

Patent Protection: Pharmaceutical companies obtain patents to protect their innovations, granting them exclusive rights to sell the medication for a specified period. Moreover, During this time, they can set higher prices to recoup R&D costs and generate profits before generic alternatives become available.

Marketing and Promotion: Massive budgets are spent on marketing and advertising to promote their medications to healthcare professionals and consumers. Additionally, These expenses, including direct-to-consumer advertising, contribute to overall drug costs.

Complex Supply Chain: The distribution of medications involves multiple intermediaries, such as wholesalers, distributors, and pharmacies, each adding their markups and costs. These additional layers in the supply chain can contribute to higher prices paid by consumers.

Insurance and Negotiation Practices: The involvement of private health insurance companies in the US healthcare system can lead to complex negotiations between pharmaceutical manufacturers and insurers. Further, These negotiations may result in varying prices and reimbursement rates, ultimately affecting the out-of-pocket costs for individuals.

Lack of Transparency: The lack of transparency surrounding the actual costs of production, R&D expenses. As well as, pricing strategies adopted by pharmaceutical companies can make it difficult to assess the fairness of drug pricing and identify opportunities for cost reduction.

International Price Disparities: Medications often have significantly lower prices in other countries due to government price controls, negotiation power, and different healthcare systems. This creates a discrepancy where the US pays higher prices for certain drugs.

Cost Plus Drugs Disrupts US Pharmaceutical Market

Cost Plus Drugs was launched in January 2022 by billionaire Mark Cuban and has been a major disruptor in the pharmaceutical industry. To address high medication costs,  Cost Plus Drugs offers a promising solution for many Americans through the sale of affordable generic medications.

The site was originally launched carrying only 100 medications however has since grown to over 800 medications.

How Does the Cost Plus Drugs Model Work

When a pharmaceutical company develops a new formula for a medication, it obtains a patent that grants exclusive production and sales rights for 20 years. Once the patent expires on the branded drugs, companies are allowed to manufacture and sell generic versions of the original medication.

Cost Plus Drugs focuses on reducing the costs of these generic drugs by bypassing intermediaries known as “pharmacy benefit managers.” Pharmacy benefit managers act as middlemen who negotiate with drug manufacturers on behalf of health insurers, large employers, and other contracting parties. However, they have faced criticism for increasing prices on affordable drugs to maximize profits, even though their role is supposed to involve negotiating discounts or rebates.

Instead of engaging with pharmacy benefit managers, Cost Plus Drugs directly negotiates with manufacturers to obtain generic drugs at wholesale prices. The pharmacy then sells these medications to consumers with a 15% markup, a $3 pharmacy labor charge, and a $5 shipping charge, as mentioned on their website.

It’s important to note that Cost Plus Drugs don’t accept medical insurance claims because insurers typically do not work with pharmacies that bypass pharmacy benefit managers. Moreover, This approach allows Cost Plus Drugs to provide affordable medications by streamlining the distribution process and avoiding the involvement of intermediaries.

Even though Cost Plus Drugs has been a disrupter for many Americans in need of cheaper drugs, crucial medications such as insulin are not available.

Canadian Online Pharmacies Bridge the Gap

Medication prices in Canada tend to be substantially lower when compared to the United States due to various factors. Further, One significant reason is government price controls and negotiations with pharmaceutical manufacturers. Moreover, These negotiations allow for more affordable pricing of medications, benefiting Canadians as a whole.

Online Canadian pharmacies have emerged as a potential solution for US patients seeking more affordable medications. Additionally, This can help alleviate the financial burden faced by many Americans who struggle to afford their necessary prescriptions.

Similar to Cost Plus Drugs, Pharma Giant provides patients access to low-cost medications, allows ordering up to 90-day supply, offers transparent pricing, and secure online ordering.

However, through Pharma Giant, Americans can receive additional benefit such as:

• THOUSANDS of medications to choose from, including:
  • Generic drugs currently not available on CPC such as Apixaban
  • Cold-chain medications such as insulin & GLP-1 drugs such as Ozempic, Wegovy, Victoza, Trulicity & Saxenda
• Medical supplies such as glucometers, lancets, and diabetes strips
• Lower prices on select medications
• Both brand & generic medications
• Additional cost savings through promotions & referral program

Drugs that are Cheaper through Pharma Giant vs Cost Plus Drugs

*Prices as of July 7,  2023

*prices may be subject to change on both costplugdrugs.com and pharmagiant.com.

Conclusion

The issue of medication affordability in the United States has become increasingly prominent as the cost of prescription drugs continues to rise. Further, This situation poses significant challenges for individuals and families, as many struggle to access essential medications without incurring substantial financial burdens. Moreover, The high cost of prescription drugs can lead to difficult choices, where individuals may have to decide between purchasing medications and meeting other basic needs. Additionally, Efforts to address medication affordability include calls for transparency in drug pricing, regulatory reforms, and policies that promote competition within the pharmaceutical industry. Furthermore, It remains a critical concern that requires comprehensive solutions to ensure that all Americans can access necessary treatments without sacrificing their financial well-being.

Websites such as Cost Plus Drugs and Pharma Giant both help Americans get access to brand and generic medications for cost savings of up to 90%.

Cost Plus Drugs offers substantial savings  on generic medications while also carrying few brand name medications.  In contrast, Pharma Giant offers thousands of both brand and generic medications, many of which are not available on CPD, which include insulin & other cold chain medications, such as Ozempic Weight Loss Pens.

Photo by Towfiqu barbhuiya on Unsplash