US drugs by mail grows to 13% of Rx market

Although it remains a minority, the proportion of US prescription drugs purchased by mail order has grown from less than 9% in 2000 to over 13% in 2005, according to the latest figures released by the Agency for Healthcare Research and Quality. In the same period, the federal agency reported that drug store sales of prescription drugs fell to 61% from 65% and those from clinics, health care management organizations (HMOs) and hospitals slipped back to 13% from 15%. Multiple retail giants, such as Wal-Mart and Target, also experienced a decline in market share from 32% to 28%, although Wal-Mart, in particular, offers a mail order facility so the decline is more to do with delivery method than a change in suppliers. In addition, these figures do not take into account changes brought about by the introduction of the Medicare Part D prescription drug benefit for seniors, or the price war stated by Wal-Mart which involves offering a range of generic drugs at $4 per month (Marketletters passim).

The AHRQ also noted that, in 2005, 37% of mail order users of prescription drugs were 65 years or older, but three quarters had at least one chronic illness and 87% had private medical insurance.