Controlling drug costs

The effect of a generic drug law on the retail cost of antiglaucoma medications

The passage of the Missouri generic drug law in 1979 did not increase the dispensing of generic antiglaucoma medications, nor did it reduce retail prices. In 1976 and in 1980, antiglaucoma medications purchased with generic prescriptions were no less expensive than medications purchased with brand-name prescriptions. Almost all generic prescriptions were filled with brand-name products. A wide range of prices (approximately twofold) was noted from pharmacy to pharmacy for each drug. The retail cost of antiglaucoma medication increased approximately 35% between March and April 1976 and July and August 1980. This was less than the increase in the Consumer Price Index for the urban United States during the same period.

Retail cost of antiglaucoma drugs in two cities

Volunteer shoppers purchased antiglaucoma medications dispensed from prescriptions written according to generic and brand-name products in Manhattan and in the St. Louis area. All drugs obtained were more expensive in Manhattan than in St. Louis. No significant cost difference was found between generic and brand-name items in either city, but only in a few instances were generic drugs actually dispensed. No difference in overall price was found between pharmacies located in better and poorer neighborhoods in Manhattan or between pharmacies located in urban, suburban, or rural areas in St. Louis. A white shopper paid significatnly lower retail prices than did a Hispanic shopper in Manhattan, particularly in better neighborhoods. The range of prices in each city for all drugs studied was greater than twofold. Pharmacies offering more patient services tended to charge higher prices, but frequently, pharmacies did not actually offer the services they advertised.