The big news this week on the drug pricing front is that Mark Cuban has launched a low-cost generic drug pharmacy. Helaine Olen reports for The Washington Post that Cuban will charge just the cost of manufacturing a generic drug plus 15 percent and a $3 processing fee. Believe it or not, Cuban’s CostPlus Drugs online pharmacy could save some people hundreds, if not thousands, of dollars.
I wish I could explain how Mark Cuban is selling generic drugs at significantly lower prices than you will ever find at your local pharmacy. But, the great news is that he somehow is. And, he has created a Pharmacy Benefit Manager so that, over time, drugs his company sells should be covered by your insurance. Right now though, your insurance won’t cover drugs you buy from his company.
Cuban’s prices are so low for some generic drugs, that his online pharmacy can mean the difference between life and death for some people. Even if you have insurance, you might be able to save a fortune relative to what your copay would be with your insurance and get the drugs you need. People who do not have insurance of course also can benefit from Cuban’s drug company. For example, CostPlus Drugs charges $17.10 a month for imatinib, the generic of the cancer drug Gleevec, even though its typical price could easily be more than $2,500 a month.
Cuban is planning ahead to control drug prices. He is building a prescription drug manufacturing site that will help ensure his generic drugs are as low-cost as possible.
Today, the federal government reports that more than five million people with Medicare are struggling to afford their drugs, including 1.8 million people with disabilities. CostPlus Drugs cannot begin to help all of them since Part D won’t cover the generic drugs he sells and CostPlus cannot help people needing brand-name drugs. And, that means that many of them will die needlessly.
In short, Cuban’s effort is a nice opening. But, Congress must step in and regulate all drug prices. Joe Manchin is blocking passage of the Build Back Better Act, which would regulate prices in Medicare for top-selling drugs. Since he does not appear to object to that portion of the bill, we need him to agree to vote for and allow the Democrats to pass at least that portion.
Here’s more from Just Care:
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