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The price may not be right: the value of comparison shopping for prescription drugs

Arora S, Sood N, Terp S, Joyce G

The American journal of managed care, 2017

Abstract

OBJECTIVES: To measure variations in drug prices across and within zip codes that may reveal simple strategies to improve patients' access to prescribed medications.

STUDY DESIGN: We compared drug prices at different types of pharmacies across and within local markets. In-store prices were compared with a Web-based service providing discount coupons for prescription medications. Prices were collected for 2 generic antibiotics because most patients have limited experience with them and are less likely to know the price ranges for them.

METHODS: Drug prices were obtained via telephone from 528 pharmacies in Los Angeles (LA) County, California, from July to August 2014. Online prices were collected from GoodRx, a popular Web-based service that aggregates available discounts and directly negotiates with retail outlets.

RESULTS: Drug prices found at independent pharmacies and by using discount coupons available online were lower on average than at grocery, big-box, or chain drug stores for 2 widely prescribed antibiotics. The lowest-price prescription was offered at a grocery, big-box, or chain drug store in 6% of zip codes within the LA County area. Drug prices varied dramatically within a zip code, however, and were less expensive in lower-income areas. The average price difference within a zip code was $52 for levofloxacin and $17 for azithromycin.

CONCLUSIONS: Price shopping for medications within a small geographic area can yield considerable cost savings for the uninsured…

How strong is the evidence?

Evidence Hub reads this as a cross-sectional, done in people. Its evidence level is 4 of 5 (Low · observational). Observational designs can show an association but not prove cause.

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