Archive for March, 2010

Drug Maker of Flomax Raises Prices 28.3%

March 15, 2010

My wife Cathy and I own Kaffe Magnum Opus a specialty Coffee Roaster and we have a medical plan for the staff.  It is very expensive and a lot of the cost is paid by the staff member. 

I take Flomax, that you have undoubtedly seen advertised on TV.  I’ve purchased Flomax four times in the last ten months.  Here are the dates and the cost of each purchase.

Date Insurance       Co-pay       Total Increase % Increase
3/4/2009 $210.11 $57.01 $267.12    
5/24/2009 $228.40 $61.93 $290.33    
8/11/2009 $228.45 $61.95 $290.40    
1/15/2010 $269.76 $73.05 $342.81 $75.69 28.34%

In the past 10 months the Price charged by the Flomax maker has increased 28.34%. 

Drug companies always cite Research as the driver of Prices.  Not in this case since the drug has been around a long time.  It is not new.

Costs are the second reason the drug companies claim price increases are ‘necessary’.  Not in this case.  Flomax has been around a long time and I know and they know that the unit cost of production comes down over time as the fixed initial costs are repaid from earnings. 

My conclusion is that the price increase was simply a price increase.  Price increases go right to the bottom line.  So if the company had profits, for example, of say $100 before the increase in price, its new earnings would be $128.34.  And most of us would never know it because we only see the co-pay.

Tell you congressman to get behind the new Health bill.  Tell him to call me at 856 825 8213 to discuss this example.  Better yet.  Give him this post.  Lets put an end to this endless run up in insurance premiums.


%d bloggers like this: