LOS ANGELES—Los Angeles' uninsured pay 69 percent more for prescription drugs than the federal government pays for the same medications, according to new research by CALPIRG Education Fund. The group surveyed prescription costs for eight commonly prescribed medications in five California cities, comparing the data to an earlier 19-state survey done by PIRG.

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"It's an outrage that those who can least afford prescription drugs-California's 6.5 million uninsured-pay the highest prices," said Jennette Gayer, CALPIRG Education Fund's Consumer Advocate. "HMOs, the federal government, and other large purchasers use their buying power to negotiate better prices, but the uninsured have no one negotiating for them."

Using a list of eight frequently prescribed medications (Norvasc, Lipitor, Celebrex, Plavix, Prevacid, K-Dur 20, Lanoxin and Zocor), CALPIRG Education Fund surveyed 50 pharmacies in California, comparing the results to an earlier survey of more than 500 pharmacies in 19 states. The new research showed how much more uninsured consumers pay for these medications than one of the pharmaceutical industry's most favored customers, the federal government.

Among the key findings were the following:

- Based on a survey of pharmacies in Sacramento, San Francisco, Fresno, Los Angeles and San Diego, uninsured consumers in California pay an average of 72% more than the federal government for the 8 common prescription medications.

- In Los Angeles, uninsured consumers pay 69% more for the 8 drugs. The price differences ranged from 37% more for Celebrex to 110% more for Prevacid.

- Nationally, uninsured Americans pay an average of 68% more than the federal government for these 8 common prescription medications.

- Of the major metropolitan areas surveyed, the four most expensive cities in which to buy prescription drugs were Baltimore, San Diego, Philadelphia, Washington, D.C. Fresno and San Francisco ranked seventh and eighth. Los Angeles was thirteenth of the 29 cities across the country. All five California cities were above the national average

"These results confirm what California consumers already know - we're paying the price for the drug industry's high profits. Too many people are forced to go without the medicines they need because they just can't afford to go to the pharmacy," said Gayer.

The report recommends buying pools, such as the 2002 California law that established a prescription drug buying pool for state agencies, as a market-based method of ensuring cheaper drugs for the uninsured. The report also recommends expansion of the California pool, which was established by Senate Bill 1315, to include individuals and businesses across the state.

"Buying pools are a practical, market-based approach to lowering the cost of prescription drugs," said Los Angeles City Councilmember Antonio Villaraigosa, who recently proposed that the city bulk purchase prescription drugs for its residents and employees. "If the Department of Veterans Affairs can use its buying power in order to negotiate more reasonable prescription drug prices for veterans, the City of Los Angeles can for all residents," said Villaraigosa.

In addition to buying pools, the CALPIRG recommended policies to address the pharmaceutical industry's strategies that drive up prices for all customers.

It urged more stringent regulation and stronger enforcement of existing guidelines on direct-to-consumer advertising of prescription drugs. This advertising costs more than $2.5 billion a year and, according to a report by the House of Representatives' Committee on Government Reform, FDA enforcement actions against violators of existing regulations fell 75% between 1999 and 2003.

In the report, CALPIRG Education Fund also supported policy reforms that would limit or ban gift-giving to doctors from pharmaceutical companies. The pharmaceutical industry employs 83,000 sales representatives and spends more than $4.8 billion a year in gifts and meals to convince doctors to prescribe their medicines instead of a competitor's.

Other recommendations included increasing access to generic drugs and increased usage of evidence-based testing for pharmaceutical drugs to ensure that consumers are paying for the most effective medicines, not just the most heavily promoted ones.

"Some of these policy reforms may be a bitter pill for the pharmaceutical industry, but they are simply good medicine for runaway prescription drug costs," concluded Gayer.

For more information visit the www.calpirg.org or see Paying the Price overview.


CALPIRG Education Fund is a non profit, 501(c)(3) organization that stands up and takes action when consumers are cheated and the voices of ordinary citizens are drowned out by special interests.