Walgreens is charging $198.80 out-of-pocket for a thirty-day supply of Donepezil – a medication used to treat Alzheimer’s. The same medication at Costco costs $14.87. Why? We asked the companies.
Prescription drug prices are another one of those black holes in our healthcare system. I was taught pricing is a signal, but this wide variation of out-of-pocket cost is hard to explain. I have also found out that most of generic prescriptions that we order from the pharmacy cost way less as a cash price than a $10 or $20 copay. Next time you are in a pharmacy, ask them for cash price of a drug and see them get very uncomfortable. Usually we are paying copays that are way more than the price of the prescription drugs. Pharmacy and your benefits manager get a cut in the difference.
Apparently, pricing strategy for prescription drugs is a state secret akin to the nation’s nuclear codes. Neither Costco nor Walgreens would discuss it with me.
Ofcourse this is a secret!!
Reference story: https://www.usatoday.com/story/opinion/nation-now/2016/11/27/why-does-walgreens-charge-1237-more-than-costco-laurie-roberts/94486422/