Costco and drug costs

[Diandra]

http://www.snopes.com/medical/drugs/generic.asp

My husband had forwarded an email that said Costco is the only pharmacy that does not make huge profits from drugs so I checked it out on snopes.com(see above) and it appears to be true. It also said that you don't have to have a Costco membership to use the pharmacy. I have not gone to Costco but will now that I have learned they charge so little for prescription meds. Thought this may be of interest.
Diandra

[mrsdoubtfyre]

I have worked contingent at Costco at times in the past.

Their prices are really good. In fact I think the lowest. However, in my area there is a discount grocery/mega store, giving FREE amoxicillin and prenatal vitamins to compete. No copay, no cost. Costco's prices for cash customers are best as the quantity is larger. And I found many people who have pets use them too (cash only).

But I will say that each store reflects who works there...get my drift?

Since I retired, I have been a customer, and have used Costco (they give the lowest copay on my % copay insurance), WalMart and CVS.

I have to say the CVS is my first choice now. It depends on the neighborhood, your needs, and who works there. Not only price.
I don't use alot of RX drugs however. Each has their own priorities.

[Pharmacist.steve]

http://www.snopes.com/medical/drugs/generic.asp

My husband had forwarded an email that said Costco is the only pharmacy that does not make huge profits from drugs so I checked it out on snopes.com(see above) and it appears to be true. It also said that you don't have to have a Costco membership to use the pharmacy. I have not gone to Costco but will now that I have learned they charge so little for prescription meds. Thought this may be of interest.
Diandra

The average independent pharmacy has a gross profit in the low 20% range with a NET PROFIT of 2%-3%... and generally indy's Rxs prices are lower than the BIG BOYS..

While as far as I know you don't have to be a member to use the COSTCO pharmacy... but you will notice that the Pharmacy is all the way to the back of the store - they are using it to get you strolling thru the largest part of the store as they can get you... a large part of front end sales are IMPULSE... but to buy.. you have to plunk down $50/yr for a membership... and the wait to get your Rx - hopefully you will walk around more... and since some of their inventory varies from month to month .. each time they get you in the store - to get a Rx filled - they increase their chances of getting you for $50 membership fee.... You don't see them selling their gas - outside of the store - unless you are a member

Walmart .. since they have started their $4/Rx program.. have deleted all drive-thru windows in their new stores plans .. and all new/remodeled stores will have the pharmacy IN THE MIDDLE OF THE STORE... they want to get you into the store to get you to spend $$$ on IMPULSE..

National stats indicates that it cost $9-$13 dollars to fill a Rx - across all 50,000 -60,000 community pharmacies.. west coast is higher than east coast.. so any cash Rx you pay less than $10 for... it is being sold AT A LOSS!

The company is making up that loss - somewhere!!

According to public financial reports COSTCO's net profit was 1.3 BILLION last fiscal year...

If you can "resist" all the other temptations in the store and not get a membership and you count in the cost of travel to/from COSTCO and the wait you will have to deal with.. then you MAY save

here is the pharmacy hours from the COSTCO nearest me:
Pharmacy Hours :
M-F 10:00am-7:00pm
Sat. 9:30am-6:00pm
Sun. CLOSED

If you are use to or need a drive-thru window - you will probably be out of luck.. if you like/need to go early/late or on Sunday .. you will be out of luck..
If you forget to get a refill .. taking your COSTCO bottle to one of the BIG BOYS.. they won't be able to get a copy - since COSTCO is closed and unless they can get a hold of your doc (after hrs/weekend)... you will be out of luck...

IF you have insurance/drug card .. you will pay THE SAME .. no matter where you have your Rx filled.. because the insurance company dictates the prices that are charged/paid

[mrsdoubtfyre]

Costco does not require a membership to use the pharmacy.

They also have special order HBAs behind the counter, much less expensive than other places. For example 60 generic SlowMag are 4.89, which is a ********* price.

The pharmacies are not typically at the back of the store. I use 3 different Costcos and have worked two others, and the pharmacies are to the side next to the check outs.

The one really down side is --- they all tend to be VERY busy with very high volume, and because of this there are long waits. It is best if you can come back the next day IMO. Some people travel long distances and this may be a very difficult issue for them. I have seen people drive hundreds of miles to a Costco. (they are cash customers and will purchase up to 6mos of a maintenance type drug).

Costco maintains a data base online...for you to check prices that way.
It can be handy but in some cases may not be updated for accuracy.
One really high volume store I temped at had so many price inquiries on the phone daily that a clerk more or less just did that task!

With that high volume comes errors, so check your RX before you ring it up.
Many of the Costcos have a new computer system installed that has bar code verification. This really helps, but errors inputting data can still occur.
The new bar code system also makes the retrieval at the pick up more efficient.

The Costco in my area closed for 4 months for a remodel. So I moved to CVS. Since I don't pay cash it doesn't really matter to me. Once I did buy cash ahead on my thyroid (for traveling) and it was the lowest in my area by far of all the stores-- it was 1/2 the price it would be cash at CVS for example.

[Diandra]

Despite all the negative aspects that both of you have mentioned concerning shopping for prescription drugs at Costco, I still think saving money trumps them all. With the amount of people losing their jobs or having their hours cut back, and just the incredible increase in the cost of necessities like food, gas, clothing, etc, we (or at least, I) have to find a way to save money. If one has to wait in lines or be strong and not impulse buy, then I think it is worth it.

I also think it is wonderful that Costco allows you to get prescription drugs without a card. I am going to give them a try to fill my next set of scripts and will let you know how that goes.

Diandra

[Pharmacist.steve]

Diandra...

As long as you are aware of all the potential pitfalls.. then your decision to use or not use .. is based on most/all of the known facts..

[RJW]

Federal law prohibits any business from denying access to a pharmacy by requiring a membership card. So Costco isn't allowing this because they are kind, they have no choice. I believe Costco's price structure is what has caused Walmart et al to bring out the $4 meds.

[Pharmacist.steve]

Federal law prohibits any business from denying access to a pharmacy by requiring a membership card. So Costco isn't allowing this because they are kind, they have no choice. I believe Costco's price structure is what has caused Walmart et al to bring out the $4 meds.

I have seen this quoted often... I have never seen such a Fed law .. nor have I ever had anyone to be able to produce chapter/verse for such a law...

Kmart brought out a similar program $15/90days 4-6 MONTHS BEFORE Walmart started.. Walmart rolled out the program in such a manner to maximize the free publicity... Walmart Pharmacy software package was written in house - they have total control over it... yet they rolled out the program .. first in the Tampa, FL area - with a BIG PR PUSH... then a few weeks later expanded to the rest of the state .. with a BIG PR PUSH... then a few weeks later a couple of more states - with a BIG PR PUSH and they kept repeating the cycle.

Walmart is trying to mute all the bad PR they have gotten in other areas... illegal workers... working employees off the clock... not providing healthcare to the vast majority of their employees .. and on and on ...

They are now promoting that the majority of their employees have health insurance.. what they are not telling you is that the employees have a HIGH DEDUCTIBLE health insurance.. Since Walmart is self-insured . they are providing healthcare coverage for basically only catastrophic sickness... and Walmart pays little out of pocket... but makes claims about how generous they are about providing healthcare to their employees...

I have been told - by Walmart Pharmacists - that Walmart has canceled all plans for drive-thru windows - because they want you in the store!... all new/remodeled stores will have the pharmacy in the center of the store ... because they want you to walk around the store.... They are hiring more and more part-time Pharmacists so that they don't have to pay benefits. Which will make the personal service that many are use to... virtually impossible...

Now with them putting walk-in clinics in their stores... I can see the day that when you wish to ask the pharmacist a question or recommend something to take .. they will refer you to the walk-in clinic where you will be charged $$... for what otherwise would be a complimentary service

9. Prescriptions must initially be filled in person. Refills must be picked up in store. There are no substitutions or mail orders.


While they have a mail-order service... the $4/Rx program is NOT AVAILABLE by mail order - BECAUSE THEY WANT YOU IN THE STORE ! I would strongly suspect that their data proves that a large majority of people getting the $4/Rx will buy other things in the store..

Walmart didn't make 13 BILLION in net profits their last fiscal year .. for selling everything at a loss...

*Prices may be higher in CA, HI, MN, MT, PA, TN, WI, and WY.

Eight states have laws against a business selling BELOW COST and the above is from Walmart website... stating such...

[Pharmacist.steve]

Federal law prohibits any business from denying access to a pharmacy by requiring a membership card. So Costco isn't allowing this because they are kind, they have no choice. I believe Costco's price structure is what has caused Walmart et al to bring out the $4 meds.
I think that I finally figured out where this mis-conclusion has came from...

Federal law prohibits a pharmacy from charging a MEDICAID patient more than their specified co-pay for Rxs.. thus - playing it safe - their legal depts have decided that MAY BE in violation of this law.. of course there is NO FEDERAL LAW that mandates a pharmacy to participate in the Medicaid program..

I checked COSTCO website and there is no reference for FOOD STAMPS... so they must not accept food stamps... which - I believe - is covered under the same federal law and would require them to sell foods eligible under the food stamps program - without being a member...

Then there is the drug card contracts (PBM)- Medco and the like - by contract they are obligated NOT TO CHARGE more than the prescribed co-pay on a Rx.. but again ... no pharmacy is obligated to sign any of these contracts or participate in these programs...

Of course ... the typical pharmacy's business is 80%-90% paid for via a PBM or Medicaid.. and all these people pay the same price .. no matter what pharmacy they patronize...

So that leaves on a 10%-20% of the population - cash customers - which is not enough to generate enough business to cover the overhead... and some idiot would probably take them to court - class action -for discrimination on the membership issue and pharmacy access...

If a Medicaid patient and/or a patient who has a drug card ... voluntarily pays them the annual membership fee.. it is not mandated..

IMO.. this is a BUSINESS DECISION ... to avoid the POSSIBILITY of having to fight with the FEDS or the PMB over the letter & intent of the laws and contracts and allows them to let non-members in the warehouse to "look around" with the hope of getting them to sign up for a membership...

Since there are some 50,000 - 60,000 community pharmacies... having these 1000 or so membership warehouse clubs' pharmacies opened or closed to non-members would not impact anyone availability to get their Rxs filled on a timely basis.

Members of these clubs should be really pissed .. part of their annual fees goes to under-write the cost of operating the "club" and outside parties (FEDS & PBMs) are forcing the "club" to provide services to non-members. Just another "free ride" for part of our population...