Forcing Employees to Buy Drugs Through the Mail.
New Corporate Policies Curb Ability to Fill PrescriptionsAt the Local Pharmacy |
Thursday, February 19, 2004 By BARBARA MARTINEZ THE WALL STREET JOURNAL |
A growing number of large employers, from Citigroup to the Big Three auto companies, are forcing employees to get their prescription drugs through the mail rather than a local pharmacy.
As with most shifts in health care, the motivation is money. Prescription-drug prices are one of the fastest-growing categories of medical costs. But mail-order drugs can be substantially cheaper in large part because the companies that sell them don't have as much overhead as retail pharmacies.
There's another big reason for the growing use of so-called mandatory mail. Employers generally hire outside companies to manage their pharmacy benefits. Many of those companies own their own mail-order businesses, and tell clients they will get big discounts if they sign up. Pharmacy-benefits companies make much larger profit margins on prescriptions filled in their own mail-order pharmacies.
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