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Canadian Drugs Beat Medicare, Many Say: Seniors: U.S. Plan Not Always a Deal

Posted on: Thursday, 6 April 2006, 09:01 CDT

By Katie Merx, Detroit Free Press

Apr. 6--Dissatisfaction with the new Medicare prescription drug program continues to fuel demand for Canadian drugs among American seniors.

In many instances, Canadian drugs remain less expensive than the cost of enrolling in and purchasing drugs through the Medicare program, giving some -- especially Michiganders with easy border access -- little incentive to join.

That's why, on Tuesday, with just over a month to go before May 15 -- the 2006 cut-off to register for the Medicare drug plan -- 17 seniors gathered in the Westland Senior Resources Department Friendship Center with prescriptions and passports in hand and smiles on their faces.

"Every three months, we go to Canada," said Jerry Keon, 81. Jerry and her husband, Jim, have been taking the Westland-sponsored bus trip to a Windsor pharmacy for the past four years. They've never had any problems at the border. The agents get on, make sure their prescriptions are for personal use and wave them on.

The Westland seniors asked that the Free Press not identify which pharmacy they visit for fear pharmaceutical companies would stop supplying medicines to it.

This month, Jerry needed only two prescriptions, and Jim was along for the ride because his doctor had given him free samples.

The 2 1/2 -hour trip was worth it for the couple. Jerry saved more than $200 on her 3-month supply of Prevacid -- used to treat ulcers and gastroesophageal reflux -- and about $20 on her prescription for the thyroid hormone Synthroid, compared with what she would have paid at home. Others on the trip said they saved at least that much. Most said the Canadian pharmacy charges them for a 3-month supply what their local pharmacy charges for a 1-month supply.

The AARP, which sponsors a Medicare drug plan, contends that "many who choose the least expensive Medicare drug plan in their area that covers all their drugs could pay less this year than getting those same drugs from Canada."

But Westland bus rider Mary Morgan said she looked into it.

"I discovered that paying the monthly and paying the deductible, I'm still ahead here," said Morgan, as the group enjoyed a mid-morning snack at a fast food restaurant near the Canadian pharmacy. "I'm not going to pay $30 more every month for Medicare. Right now I pay $228 Canadian (about $196 U.S.) every three months. They're trying to scare me into it, but I'm not going to be pressured or bullied to sign up by May 15."

Medicare representatives say they aren't trying to bully seniors -- they just want them to have all the information they need to make informed decisions about whether the Medicare drug program would work for them.

If eligible seniors who don't have alternative drug coverage don't sign up for a Medicare plan by May 15, they'll pay more for their monthly premium if they sign up in the future. The next enrollment period begins in November for benefits starting in 2007.

So far, nearly 7 million people have signed up for standalone Medicare prescription drug plans, and about 27 million senior and disabled citizens have drug coverage. Private companies administer the Medicare drug plans, each of which has a different combination of premiums and co-pays.

Border-town pharmacies and the U.S. facilitators that help American seniors buy drugs from Canada say that's made a dent in their business.

"Overall, there's no question we took a hit across the board to some degree," said David MacKay, a consultant for International Pharmacy Services in Canada. "But we've discovered a rebound effect is already under way. A number of American patients test-drove Medicare. ... Now they are returning to us in larger ... numbers after they have experienced the bitter fruit of Medicare."

Troy-based Canadian Drugs USA reports that its business is down about 40% since Medicare enrollment began. It closed its Warren office in response last month. But owners Dan Jenuwine and Scott Stevenson said they expect business to rebound as some seniors find they can still save more in Canada and as other Americans find themselves without prescription benefits as employers drop the coverage and make layoffs.

One Canadian pharmacy benefits manager that hasn't seen an impact from Medicare, however, is CanaRx. President and Chief Executive Officer G. Anthony Howard said his business is 400% bigger today than it was a year ago.

CanaRx works with cities and counties in the United States to arrange pharmacy benefits for their employees. It doesn't have any Michigan groups, but cities that use it are saving money.

Christopher Collins, chairman of the Insurance Advisory Committee for Springfield, Mass., says his city saved $3 million in the first year of using CanaRx. The program is voluntary, but employees who use CanaRx instead of their local pharmacy or a U.S. mail-order pharmacy don't pay a co-pay. Muncie, Ind., started encouraging employees to purchase medicines through CanaRx in August. The city says it has already saved nearly $100,000.

Howard doesn't anticipate a drop in demand for Canadian drugs as long as U.S. drug prices run nearly 300% more than the world average price while other countries using the same drugs pay just 3% to 10% more than that price.

Still, the pharmaceutical lobby warns that people who can't afford their prescriptions shouldn't be lured into importing drugs illegally.

"Patients should know importing prescription medicines from foreign countries ... is inherently risky and could expose patients to fake, substandard or even adulterated medicines," the Pharmaceutical Research and Manufacturers of America Vice President Ken Johnson said in a news release.

Instead, he said, people should seek help through the more than 475 assistance programs available through the Partnership for Prescription Assistance at www.pparx.org or 888-477-2669.

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Copyright (c) 2006, Detroit Free Press

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Source: Detroit Free Press

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