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Rite-Aid Rhetoric (Or Rip-Off)

First of all, disregard my user name. I'm not angry about this issue, just feel it deserves to be put out there as an FYI.......

Rite-Aid does NOT automatically charge the cash price of a medication when it is less that your co-payment.
So if you fill a $4.00 Generic Rx and your co-pay is 5.00, you will pay the $5.00.

Rite-Aid also does not publish a list of their 4.00 generics. As a matter of fact, if you watch their advertising, they make very little, if any claims, about the cost of prescriptions.

If you ask, and ONLY if you ask, they will match a competitors price, such as Wal-Mart, Meijer or Kroger's $4.00 generics. Then, when you go to pick the Rx up, there's a very good chance they will have "accidently" charged the higher price. Then, in order to correct it, they have to "re-run" the Rx and will take at least 10-15 minutes to get the credit completed.

Also, for those with no insurance, I called for a cash price today on a popular medication. Rite-Aid's price was $38.56 and Costco was $6.99.

My suggestion, to any cost-conscious consumers, especially the elderly, is to check around. There's a very good chance you are paying much more than you need to at Rite-Aid. I personally find their pricing structures unethical but I fully recognize it's their right to price items as they see fit.

Below is a copy of my email to them and their reponse to me.

-------------------------------------------------------------------

----- Original Message -----
From: Inquiry Account
To: My Name
Sent: Tuesday, June 24, 2008 5:19 PM
Subject: RE: Customer Service Contact Form

(My Name),

I apologize for the inconvenience. Whenever Rite Aid price matches a
medication it must be requested each and every time. Also, they must also
verify the price at the establishment before proceeding. If it isn't
requested and verified, our price will be applied. I apologize for the
inconvenience this causes you.

Corey
Customer Support

-----Original Message-----

My question is quite simple and to the point. WHY do you make it so
difficult for your customers to receive $4.00 generic prescriptions? You
customers must "ask" for it or "ask" you to match a competitors price. You
supply No list of $4.00 generic drugs, the pharmacy staff must look it up
each time. Often, they either do not look it up or the look it up
incorrectly, resulting in more time getting the matter resolved. This
results in some customers paying a higher price that others, which is
clearly unfair and in my opinion, the elderly are at an extreme
disadvantage.
My wife and I are growing increasingly frustrated at the hoops we must jump
through in order to be charged $4.00 for your selected Generic drugs. It is
extremely time consuming and not the least bit user friendly or easy. The
majority of your competitors make it very simple to pay the $4.00 generic
cost. They have a posted and/or available list, the program is well and
clearly advertised and when the prescrition is refilled and picked up, the
$4.00 is automatically charged. Very simple and very fair.
I suspect one reason your policy on this matter is rather vague and
non-advertised is to maximize profits. It's certainly your right to operate
any way you chose to see fit, but I would ask for an explanation.
While your store(s) are closest in proximity to us, there are a plethora of
other choices that we could choose to simplify our medication needs.
Thank You in Advance,
(My Name)

created by angryconsumer on Jun 24, 2008 at 06:57:23 pm     Comments: 22

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Comments ... #

Well at least they apologized...I don't use Rite Aid, but have used Walmart for their generics and I never have to ask for the price. I was actually pleasantly surprised when they told me $4.00 for my prescription! Seems odd that Rite Aid can't offer the same service to their customers.

posted by NeighborGirl on Jun 24, 2008 at 07:41:33 pm     #



The copay thing may not be a Rite Aid-specific issue.

Prescription insurance plans can be set up in 2 different ways:

1) You pay the "lesser of" your copay or the cash price.

or

2) You pay your copay, no matter what. (Even if that means being charged a $20 copay for a $4 generic drug.)

Policy type #1 is the most common type of plan. However, consumers with prescription insurance need to be aware of the fact that policy type #2 exists, and to confirm which type of plan they are on.

Consumers who happen to have policy type #2 need to be smart about filling a prescription - if you know that your drug is on the $4 generic list and you have a $20 copay, then obviously the smart thing to do in that situation would be to not run your prescription through your insurance at all.

(And there is my "know your insurance plan and make ithe most out of it" tip for this week.) ;)

posted by mom2 on Jun 24, 2008 at 07:55:52 pm     #



I have worked in health care for a long time. We all know Rite Aid is over priced. We always recommend Kroger, Giant Eagle, Meijers, or Walmart.

posted by trixanne on Jun 24, 2008 at 08:08:47 pm     #



mom2-
Regarding your #2 scenario, most (All that I know of, except Rite-Aid)Pharmacies will automatically NOT run it through the insurance if the cash price is less. Not Rite-Aid. Actually has nothing to do with the insurance but rather the policy of the store/pharmacy.

posted by angryconsumer on Jun 24, 2008 at 08:54:22 pm     #



Their slogan, "With Us It's Personal" is somehwat of a joke, isn't it? Or they mean personal in that they personally want to take advantage of your wallet.

posted by angryconsumer on Jun 24, 2008 at 09:04:37 pm     #



I'm a medical student. Among family docs and primary care docs I think it is pretty well known that Rite-Aid is the most expensive pharmacy out there. In general Wal-Mart, Sam's Club, Costco (Sam's Club and Costco cannot legally require memberships to buy pharmaceuticals, so you an just walk in), and Kroger have the cheapest drugs. You can easily find Wal-Mart's $4 scripts online, and you can ask your primary care doc if he can switch you to these drugs. (For example, if you take Lipitor ask to be switched to pravastatin or lovastatin or if you take Lexapro for depression ask to be switched to citalopram or paroxetine). Take an active role in your medication selection. Unfortunately many physicians don't consider cost when prescribing medications.

posted by HeyHey on Jun 24, 2008 at 10:00:45 pm     #



Earl of Auburn CA (7/13/03):

I feel this complaint is very important. Rite Aid consistantly charges me a co-pay of $9 for any prescription, even when the medicine would cost less than $9 if paying cash. Lay consumers usually do not know the usual selling price of an rx. I know that the pharmacies at Longs and Target charge me the usual price (e.g $4-$5), NOT the HMO co-pay of $9. This activity is unethical, unprofessional and illegal.

posted by angryconsumer on Jun 25, 2008 at 04:14:50 am     #



http://www.consumeraffairs.com/rx/riteaid_rx.html

posted by angryconsumer on Jun 25, 2008 at 04:17:12 am     #



And to think - Janney's Hardware got torn down and now coming soon we'll have a brand spanking new Rite Aid right in my little neighborhood!! (with a walgreens right across the street!)

posted by billy on Jun 25, 2008 at 11:50:00 am     #



When my mother-in-law was living at home, her co-pay for any presciption was $2.00 at Rite-aid. That was three years ago. She passed away in January of this year.

posted by flinty on Jun 25, 2008 at 12:02:28 pm     #



Please be careful when switching to generics as suggested by HeyHey.

While most people do fine with the generic versions of popular medications, not everyone does so have your doctor monitor your switch.

The main differences between generics and name brand drugs are the "fillers" or inert/inactive ingredients but there may also be a difference in how quickly the chemicals are absorbed by the body. The FDA allows a 20% difference between the generic and the patented drug.

I had a horrible experience the last time I was on prenatal vitamins. The first batch was brand name and I was fine but then, because of our insurance, I was switched to the generic and I had a terrible reaction to them. I had to have the doctor specify DAW (dispense as written) and it cost me more but I didn’t mind because the others made me so sick.

I’m not saying don’t switch but just please be aware that there can be complications.

As for pharmacies, I have found Kroger’s and Target to be the best in this area.

posted by MaumeeMom on Jun 25, 2008 at 01:07:07 pm     #



Costco is extremely inexpensive compared to other pharmacies drug pricing. Downside is that I don't think they carry any inventory until you show up with a prescription. They they "order it in". Expect a wait, maybe a day or two in some cases for maintenance medication. Their hours are also limited including the lunch hour when they close completely. For me though, those inconveniences are not much compared to the substantial price advantage. But I have learned to call ahead and ask about my medication availablilty. That's interesting about not needing a membership to use their pharmacy. They ask for your membership card at least three different times in the process. I'd be prepared for a battle if you try it without a membership. My out of pocket monthly drug cost went from $140 to $54.00. That's not chump change. This is with the same insurance plan in place.

posted by holland on Jun 25, 2008 at 02:09:32 pm     #



I stopped shopping at Rite-Aid after they shut down my neighborhood PHARM store.

Walgreens was running a HUGE SCAM with prescriptions, on a national level. Walgreens would fill certain prescriptions with CAPSULES instead of TABLETS, because they could charge more to Medicaid.

Example: ZANTAC

Medicaid would pay up to 34 cents per tablet or $1.25 per capsule for Zantac.

So Walgreens (and other pharmacies...CVS, etc), went ahead and filled customers prescriptions with $1.25 capsules instead.

Walgreens later returned $35 Million back to the government, following a Federal lawsuit. Of course, they admitted no wrong-doing.

story here:

http://www.cbsnews.com/stories/2008/06/13/eveningnews/main4180870.shtml?source=mostpop_story

posted by WalterAnthony on Jun 25, 2008 at 04:08:39 pm     #



I am considering creating an extensive website regarding Rx costs and policies at the different Pharmacies here in Toledo. Would be similiar to Toledogasprices.com.

If Consumer Reports publicity doesn't get them to lower their prices or policies, I'm sure I wouldn't either.

None the less, any feedback on the idea is welcome!

posted by angryconsumer on Jun 25, 2008 at 04:15:53 pm     #



That's an excellent idea with wide appeal and usefulness. Consider a format where consumers could post their individual experiences in modest detail and apply a rating of positive, neutral or negative. The site could tabulate and report the results by pharmacy location and pharmacy company. This would be entirely consumer driven and rated. There would no liability on the part of the site owner. You could allow the company or pharmacy to post a response to complaints. Other sections for pharmacy policies and drug pricing comparisons would be controlled by the site. Corporate headquarter locations and contact information for company CEO's could be prominently listed. Very powerful. I see this going nationwide. The hardest part - getting companies to divulge their pricing policies. Sorting out co-pay issues from cash drug prices vs insurance drug prices will likely rile the feathers of the insurance companies too. They may not want it known that some would be better off not just plunking down that drug card. Man - I wish I had the savy to put up a site like this.

posted by holland on Jun 25, 2008 at 07:59:34 pm     #



holland - most pharmacy contracts are based on AWP. (Average Wholesale Price)

Usually the pharmacy benefit manager (PBM) will negotiate a discount from AWP. (ex - the pricing for generics would be "AWP minus 4%")

A chain such as Rite Aid or Walgreens might have different agreements with different PBMs. So, it might be a little difficult to accurately maintain the insurance portion of the hypothetical website you were discussing.

However, it would (should) be relatively simple to obtain each chain's retail pricing. And it would be somewhat manageable to obtain a list of AWP pricing. You just wouldn't know what discount from AWP each and every PBM negotiated.

posted by mom2 on Jun 25, 2008 at 08:21:23 pm     #



Hmmm, so basically doable. What does "somewhat manageable to obtain a list of AWP" mean exactly. Do you knwo if Medicare or Medicade maintain publicly available records of drug wholesale prices? How often do they change?

posted by holland on Jun 25, 2008 at 08:33:32 pm     #



The reason that I said "somewhat manageable" is that there are different entities that publish AWP data. Generally when a contract is being negotiated, they will say "AWP, as defined by..." and list which company they are going by.

Sort of like how there are different companies that publish automobile blue books. But most people/companies will use the Kelly Blue book.

The AWP info would be obtainable...you'd just need to be conscious of the fact that more than one private company publishes AWP data.

(Though I don't think there is huge variation amongst the different companies...just like the Blue Books. Even if there is a difference in 2 different Blue Book prices for the same car, its probably not a huge variance.)

posted by mom2 on Jun 25, 2008 at 09:03:53 pm     #



While most people do fine with the generic versions of popular medications, not everyone does so have your doctor monitor your switch.

Study after study after study has shown generics to be exactly equal in efficacy to name-brands. Using the argument that the fillers of a pill will affect the effectiveness of a medication works both ways. The generics have just as good of a chance to actually work better than the name-brands if their filler formulation are different.

posted by HeyHey on Jun 25, 2008 at 09:09:06 pm     #



Oops...didn't address the second part of your question:

I believe that AWP lists generally have monthly updates.

(Every individual drug doesn't necessarily change monthly, of course...just updated lists for the drugs that happened to change that month.)

posted by mom2 on Jun 25, 2008 at 09:12:20 pm     #



HeyHey, I am not trying to debate with you over generic -vs. - brand name drugs. I would just like to stress to those who may consider switching that it should be done under a doctor's care. As a person who had a serious reaction to a generic drug, I know firsthand that there could be problems. I am not saying that generics are bad but there are differences between the generics and the brand name drugs. Most people can tolerate these differences but not everyone.

Ethically, as a med student, I wouldn’t think that you would have a problem agreeing that any change in medication should be done under a doctor's supervision.

As for the website to track the Rx prices, it sounds like a nice idea. Good luck, please let us know what you come up with.

posted by MaumeeMom on Jun 26, 2008 at 02:13:51 pm     #



Ethically, as a med student, I wouldn’t think that you would have a problem agreeing that any change in medication should be done under a doctor's supervision.

You're absolutely right here. Your doctor and you must always (ALWAYS!!!!!) be on the same page. You should always inform your physician of every single thing you take, including vitamins and those "natural" supplements (just because they're natural doesn't mean they don't have major effects on physiology).

posted by HeyHey on Jun 26, 2008 at 06:24:22 pm     #