The cost of drugs is important to consumers

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The cost of drugs is important to consumers

• According to a 2003 report 11.7 of the
  population in Michigan (1,162,797 citizens) are
  uninsured
• almost all of them are under the age of 65
• one in five are children.
• Even Seniors who are Medicare D eligible and who
  have enrolled in Medicare D are sensitive to drug
  prices.

Report commissioned by Governor Granholm
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MEDICARE PART D DONUT HOLE
100
25
100
5
1
2
3
4
0
250
2,250
5,100

• 1 You pay 100 of the first 250 prescription
  drug costs
• 2 You pay 25 of the next 2,000 prescription
  drug costs
• 3 You pay 100 of the next 2,850 prescription
  drug costs
• 4 You pay 5 of anything over 5,100 for the
  rest of the year.
• 250 500 2,850 3,600 that you pay before
  receiving catastrophic coverage.

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AG WEBSITE (HB 4559) vs. DCH WEBSITE

• AG
• LOCAL Usual Customary (retail) price of 150
  most commonly prescribed drugs
• CUSTOMIZED SEARCH by consumer and sorted by
  pharmacy or zip code
• DOSAGE QUANTITY specific per drug

• DCH
• Statewide Usual Customary (retail) price of 25
  most commonly prescribed drugs
• No search
• No quantity
• Includes drugs available over the counter

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What are other states doing?
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DRUGS SURVEYED
Drug Name Dosage Quantity Common Use
Albuterol Inhaler 90 MCG 1 inhaler Beta-agonist inhaler used to treat or prevent symptoms of asthma, emphysema, and other breathing problems
Amoxicillin 500 mg 30 tablets Penicillin antibiotic used to treat bacterial infections
Cephalexin 500 mg 30 tablets Cephalosporin antibiotic used to treat certain infections caused by bacteria such as pneumonia and bone, ear, skin, and urinary tract infections
Gabapentin 300 mg 90 tablets Anticonvulsant used to treat seizures associated with epilepsy
Ibuprofen 800 mg 30 tablets Nonsteroidal anti-inflammatory drug used to treat minor aches and pains associated with the common cold, headache, muscle aches, backache, and arthritis
Lexapro 20 mg 30 tablets Selective serotonin reuptake inhibitor or SSRI used to treat depression and generalized anxiety disorder
Loratadine 10 mg 30 tablets Antihistamine used to relieve hay fever and allergy symptoms including sneezing, runny nose, and red, itchy, tearing eyes
Nasonex 50 MCG 1 bottle Steroid inhaler used to prevent and treat seasonal and perennial allergies
Seroquel 100 mg 120 tablets Antipsychotic agent used in the management of emotional or mood disorders, including schizophrenia
Zoloft 100 mg 30 tablets Selective serotonin reuptake inhibitor used to treat depression, panic disorder, obsessive-compulsive disorder, severe PMS
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Pharmacies Surveyed

• Randomly selected approximately 20 pharmacies in
  the following communities

1. Ann Arbor
2. Dearborn
3. Farmington Hills
4. Flint
5. Jackson
6. Kalamazoo

7.Marquette/Escanaba/ Iron Mountain 8.
Midland/Bay City 9.Muskegon 10.Warren
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Consumers Right to Know

• Consumers have a right to know the price of
  prescription drugs when they ask in person or by
  phone (MCL 333.17757).
• Pharmacies must conspicuously display written
  notice at each drug counter the consumers right
  to ask for drug prices.
• Report violations to the Bureau of Health
  Professions at the Michigan Department of
  Community Health by calling [phone].

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Survey ResultsExtreme Price Differences in Ann
Arbor
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Survey ResultsExtreme Price Differences in
Dearborn
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Survey ResultsExtreme Price Differences in
Farmington Hills
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Survey ResultsExtreme Price Differences in Flint
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Survey ResultsExtreme Price Differences in
Jackson
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Survey ResultsExtreme Price Differences in
Kalamazoo
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Survey ResultsExtreme Price Differences in
Marquette/Escanaba/Iron Mountain
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Survey ResultsExtreme Price Differences in
Midland/Bay City
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Survey ResultsExtreme Price Differences in
Muskegon
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Survey ResultsExtreme Price Differences in Warren
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A local Prescription Drug Finder Web site is
important and heres a good example why
  ALBUTEROL ALBUTEROL
     
     
  HIGHEST LOWEST
Ann Arbor 30.40 16.49
Dearborn 50.39 10.00
Farmington Hills 29.99 13.99
Flint 29.99 15.00
Jackson 29.99 6.16
Kalamazoo 31.98 11.69
Marquette/Escanaba/Iron Mountain 34.35 12.99
Midland/Bay City 29.99 12.88
Muskegon 42.99 10.89
Warren 29.99 13.99
Highest 50.39
Lowest 6.16
Price Difference 718
DCH Usual Customary Price 28.39
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What is your Attorney General doing as a result
of the Drug Survey?

1. Notifying all 4 pharmacies of their potentially
   illegal conduct in refusing to provide price
   information over the phone
2. Alerting the Bureau of Health Professions to
   pharmacies that refused to provide prices
3. Price gouging investigations of 28 pharmacies
4. Making all survey information available at
   www.michigan.gov/ag.

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Recommendations

• Governor and Department of Community Health
• should take drug price information that they
• already have and make it available on a drug
• price Web site, including
• All communities (searchable by city and zip
  code)
• All drugs
• Monthly updates.