March 12, 2007

Pricing structures

I just ordered a new 90-day supply of BP pills. It occurred to me that by using the mail-order system my health care provider offers I get a discount: if I walk in to renew, it costs me $45 for these pills; if I call in the refill and have it mailed to me, it costs me just $30.

Does this make any sense? There's a lot more product handling going on when the customer requests mail order than when the customer walks in to the pharmacy, so shouldn't the pricing be exactly the opposite?

Just a random thought.

Posted by Linkmeister at March 12, 2007 09:42 AM | TrackBack
Comments

Tri-Care mail-in pharmacy savings are even more striking: I get 90 days from mail-in for the cost of 30 days walk-in. Not sure why it works, but I'll sure take it.

Posted by: terry in AZ at March 12, 2007 07:41 PM

Maybe because you buy "in bulk" (90 days), and the mail order pharmacy has a contract with your insurance carrier, guaranteeing that you will use them. You can use your local pharmacy for an emergency dose of drug, like an antibiotic.
My hubby's insurance plan has been using mail in companies for years. Works pretty good, too!

Posted by: toxiclabrat at March 13, 2007 04:12 PM

I get the same deal; in fact, if I want 90 days worth (and I DO because I don't want to do this any more often than I have to), I HAVE to use the mail order option. The walk-in pharmacy will not give me more than 30 days worth. I DON'T get 90 days' worth for the price of 30, though.

I think the issue is that when you do mail order they only have to deal with you 1/3 as much, so they only need 1/3 of the people to handle your order. The postage when they mail you the pills is cheaper than the clerk who rings up your order in the pharmacy, and postage charges don't take sick leave or have pensions. Also the whole thing can be handled by non-union workers in a low-rent rural location, with maybe 1 or 2 supervising pharmacists to count out the pills. Sorry, my cynicism is showing.

Posted by: hedera at March 17, 2007 01:55 PM