Rep. Ucci Files Bill To Help Uninsured Pay For Prescriptions

From the Rhode Island General Assembly Press Office:

Saying that pharmacies continue to make exorbitant profits off of those who are least able to afford it, Rep. Stephen R. Ucci (D-Dist. 42, Johnston, Cranston) has introduced legislation to regulate the amount that they can charge uninsured customers for prescription medications.

Under the bill (2011-H 5306), pharmacies would be prohibited from charging uninsured customers 20 percent more than the price negotiated with all medical insurance companies.

Representative Ucci said his legislation would change purchasing practices to better represent those who pay the most and are the most disadvantaged.

 “The fact that sick, primarily elderly people without drug coverage pay higher prices than do those with coverage is unconscionable,” said Ucci. “These customers are being taken advantage of without any recourse. Pharmacies know they can continue to raise the prices of prescription drugs because their customers have no choice- they need these medications to survive. It is alarming to know that people who lack coverage — our state’s poorest residents — pay the highest prices of all.”

While he said his main priority is to provide relief to those who need it the most, his legislation still allows for pharmacies in the state to reap a significant profit by permitting them to charge up to 20 percent more than the negotiated rate for medications.

“I understand that pharmacies are for-profit entities, but they also have a medical responsibility to the community. The range of prices that they charge for the exact same pill is unthinkable. Those of us who are lucky enough to carry health insurance don’t realize that this blatant price gouging is going on,” continued Ucci.

According to a 2000 study conducted by the U.S. Department of Health and Human Services, the price difference between those paying cash and those covered by insurance is significant. One analysis estimated that in 1999 the median price difference between cash payers and third-party payers for the 200 most commonly prescribed drugs was 14.6 percent. This means that for half of the drugs studied, cash payers paid at least 14.6 percent more than third-party payers did. A similar analysis was applied to drugs used most often by Medicare beneficiaries, which showed that cash payers paid higher prices for 19 of the 20 most frequently prescribed drugs for Medicare recipients in 1999.

Ucci’s legislation was heard this week by the House Corporations Committee and was held for further study.