Drug Price Website Reveals Consumer Demand For Easier Price Comparisons

Attorney General Spitzer today said that surveys by his office of thousands of pharmacies across the state have revealed that the retail price for commonly prescribed drugs can vary greatly across the state and even within the same community, with the highest surveyed price as much as 17 times the lowest surveyed price.

"Our work clearly demonstrates that consumers want better access to prescription drug prices so that they can comparison shop and maximize their health care dollars," Spitzer said. "It is critically important - especially for the 2.9 million New Yorkers who lack prescription drug coverage - that this important research, which draws heavily on voluntary efforts, continue."

The drug price surveys demonstrate that consumers may not be able to easily compare drug retail price lists and use them effectively to comparison shop and get the lowest price for needed medications. Specifically, the Attorney General’s comprehensive review of six statewide surveys between July 2004 and March 2005 revealed that:

• Some of the highest price variations within ZIP codes were found in downstate counties including the counties of: Bronx, Nassau, Queens, Richmond and Suffolk;
  
• In downstate New York, surveyors reported that access to drug price lists was delayed or hindered by long waiting lines at busy pharmacies;
  
• In upstate New York, especially in rural areas, surveyors noted that long travel distances between pharmacies presented a significant obstacle for consumers, especially seniors and individuals with disabilities;
  
• Most chain pharmacies surveyed did not use the State Pharmacy Board’s format for price listings, making it more challenging to do side-by-side comparisons;
  
• A majority of independent pharmacies scattered across the state used the Pharmacy Board’s specified format, but often filled out the prices for the listed drugs by hand, making the list unreadable;
  
• In many instances, pharmacies did not list the drugs in alphabetical order or failed to list the Board-specified quantities or dosages.

Spitzer noted, however, that his survey review also has uncovered some encouraging data. Specifically, a marked increase in compliance with disclosure laws among the surveyed pharmacies was discovered. The number of pharmacies failing to post signs informing consumers that drug retail prices lists were available upon request dropped from 20 percent in August 2004, when the first survey results were released, to 0.27 percent in March 2005.

In addition, in March 2005, 99.6 percent of surveyed pharmacies readily provided their retail drug price lists upon request.

In August 2004, Spitzer’s office launched an interactive website, that allowed consumer access to the results of a survey of 170 pharmacies in 25 counties. The website was developed to educate consumers about the value of comparison shopping for prescription drugs. The survey results revealed widely disparate prices for the same prescription drugs at pharmacies throughout the state and even within the same county.

In October 2004, in response to an extremely high number of requests from consumers across the state, the Attorney General’s Office expanded the scope of the survey to include pharmacies within all 62 counties.

Currently, with the assistance of AARP’s 250 volunteers, called "Rx Watchdogs", the Attorney General’s website contains price information from more than 700 pharmacies across the state about all 150 of the most commonly prescribed drugs as determined by the State Pharmacy Board.

Since its inception nine months ago, the website has received more than 2.5 million hits. In addition, Spitzer’s office has responded to hundreds of letters and phone calls from consumers without access to the Internet, seeking assistance in comparing drug prices at pharmacies.

Consumers have overwhelmingly sought an expansion in the scope of the website to include pharmacies in particular locales and a larger range of prescription drug prices. In addition, numerous pharmacists have contacted the Attorney General’s office and, citing competitive prices, have asked to be included in the survey, even, at times, volunteering to supply their own drug prices for inclusion in the website data.

For the Attorney General’s Office, the NYAGRx.org survey and website project is being handled jointly by staff from the Health Care Bureau, the Legal Technology & Systems Management Bureau and the Division of Regional Offices, led by Health Care Bureau Director of Policy and Research Rashmi Vasisht under the supervision of Health Care Bureau Chief Joseph Baker.