The Pharmacy Chick

Flying the Coop in Retail

The Price Override: biting the hand that feeds you.

Filed under: Uncategorized — pharmacychick at 10:38 pm on Friday, September 26, 2008

Pharmacy Chick would like to believe that the prices that the pharmacy charges to cash payers have been researched by a department of very smart people who have devised complicated formulas for each drug to remain competitve in every market.  Either that or its a random collection of prices set by a bunch of drunk executives trying to justify their existence.  Lately I am leaning towards the “drunk executives”.

When some poor (literally) soul without insurance comes in with a clindamycin 150 #56 2 TID,  my cost is something like $4-6 dollars.  The price to the customer comes out at $70+.  I suspect this goes back to the pricing schedule based on a percentage of the brand.  Brand Cleocin would be at least twice that, so $70 is still a great savings over the brand.  Regardless, if you dont have any money, $70 is as out of reach as that Astin Martin I saw in the parking lot.

I usually try to encourage the uninsured to at least obtain some kind of discount plan, preferably a free one. (why should a PBM make money for nothing?) Not all do and Pharmacy Chick gets to make a decision: Charge the full price and hope they dont balk and leave, or sell it competitively to keep the sale.

Therefore, I will occasionally give somebody a break on these one-timers.  I try not to override prices on monthly rx’s because it means somebody has to remember to do it every month, and invariably it will get forgotten.  Then something weird happens:  the customer who was oh-so-grateful for Chick’s price reduction, now considers it an entitlement and gets indignant and pissy when this price reduction is accidentally forgotten.  It happened enough times that I have decided its not an exception.  By bad luck or fate, these special cases always seem to show up when relief pharmacists or techs or on duty.  They either don’t notice or don’t care that the price is different.

I had one today but it wasn’t my own price override.  I had a transfer from within our own company.  The retail price was $21.  It was a non-covered item. She bristled at the counter when the tech rang her up. Apparently the pharmacist at the original store sold it to her for $10 and neglected to tell us that when we did the transfer.  Her pissy attitude put me off right away.  “He apparently gave you some kind of special deal, because this is the standard retail price.” I told her and offered to call to find out what he had been doing.  We obtained the information, decided to grant her the same offer and redid the rx.  The ungrateful wench grabbed her bag and walked off muttering something about getting ripped off.

The Tech was pissed because she was the one who did all the work.  “You’d think she might be grateful we agreed to charge the same price…we didn’t have to.” she said.  I agreed with her on that one. I just told her that some people look their gift horses in the mouth.

Thought for the day:  No good deed goes unpunished.

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8 Comments »

471

Comment by sickofstupidpeople

September 27, 2008 @ 2:30 pm

I have had the same experiences. The worst is when you’ve been matching a price for over a year, and someone (usually me) figures it’s time to update that price match. I had a guy throw a fit because his script went up to $102 at the competitor we had been matching – a full $10 MORE than us. He stomped out cussing under his breath – oh well – good luck to him finding it for less anywhere else…

472

Comment by pharmacychick

September 27, 2008 @ 4:44 pm

I had one lady who came up with 3 controlled rx’s and asked “do you price match?” I said “yes, who do you want me to price match.” She said “I dunno, who’s nearby?” I really didn’t care much at that point so I said: ” you are assuming I am higher than everybody else. Then why did you come here?” She had no answer. “I dunno”. I told her I would price match ONE competitor of HER choice. She finally picked some store for me to price match. I chuckled to myself because she picked somebody who is typically higher than me. So I called them, got the prices and went thru them 1 by 1. $1.50 higher, $4.00 higher, and $3.00 higher. “Oh, then i’ll take YOUR prices.”
Damn, she keeps coming back, we keep charging her the same prices and every single time we ring her up, she asks “DID these go up?” “NO, THEY DIDN’T”.

473

Comment by CPhT

September 28, 2008 @ 6:01 am

I refuse to price match controls. I figure, since they are on nobody’s $4 list or anything, I will not do it. I tell them that it’s just not allowable. I allow them the Triple-A motor club discount we can offer, or an AARP discount, but nothing more.

474

Comment by sickofstupidpeople

September 28, 2008 @ 3:32 pm

I don’t match on controls, either.

475

Comment by Pharmacy Psychic

September 29, 2008 @ 11:03 am

Thank goodness the chain I work for doesn’t price match anything. We tend to be more expensive, but we’re also open when those other places are not.

476

Comment by Cathy Lane RPh

September 29, 2008 @ 5:34 pm

I’d been thinking in pharmacy school way back in the dark ages, that we were taught that we cannot charge a customer one price, then turn around and charge the customer half-price if they pay cash. I hadn’t worked retail since internship, but now I when I do, I wonder how I got so confused as to what was legal and came to that thought process–I see evidence of this ‘one price if submitting to insurance and a different if cash’ more and more. I thought at the time, it was some kind of insurance fraud matter. I dunno.

477

Comment by RAY

September 30, 2008 @ 2:46 pm

The pricing structure is part what you said part industry controlled. As and independant owner, I have to price my drugs myself. I must be careful not to short myself. But where am I shorting myself you ask? Competition? Percent Brand? Price Matching? Well partly, but mostly from that Insurance contract. You know the one that says AWP -17% plus 1.00. Well if my U and C is (usual and customary for those not in the profession) is less than AWP -17% plus 1.00, then I only get paid the U and C price (its in the small print of the contract). If I set my pricing at Wal-mart levels, I’m losing money every time I fill a prescription for insurance customers. Which we all know is 90% of our business. I can’t afford to just throw money away to “stay competitive” and I’m sure your corporation doesn’t want that money going back in the PBM’s pockets either. I can guarantee the PBM isn’t giving it back to the provider its contracted with to handle the claim. Thus, pricing is weird and overrides (which aren’t supposed to happen per law) are a necessary evil. We aren’t even going to mention the legality of Wal-Mart et al. billing the PBMs for drugs not on the $4.00 plan and not billing them on the $4.00 plan drugs…thats a whole other rant.

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Comment by JD

November 30, 2008 @ 11:54 pm

I am just wondering if price-overriding for your friends is illegal? and what could be the possible charges?
I work at wal-mart and everyone seems to do it!

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