US seniors' Internet drug-buying studied

12 January 2001

US seniors are using the Internet and plans that offer discounts both onmail-order and at drugstores to get cheaper prices for their prescriptions, reports the South Florida Sun-Sentinel, but it quotes Forrester Research as saying this method will not replace the drug store. Many on-line discount plans issue membership cards that can be taken to local pharmacies, says Forrester, and, while 39% of US households have access to the Internet, only 8% headed by someone at least 65 years old are on-line. Moreover, says market research Insight Express, many seniors who do have Internet access do not want to buy their medications on-line.

Discount plans are offered by CVS, Eckerd, Walgreen, Phar-Mor, AARp and the American Automobile Association, while YOURxPLAN is a joint venture between Merck-Medco Managed Care and The Reader's Digest Association. Internet-only firms include Drugstore.com, Soma.com, PlanetRx.com and RxUniverse. Many sites sell prescription drugs on the Internet without requiring purchase of a membership card and also offer cards that can be used at local pharmacies, notes the Sun-Sentinel. RxUniverse's card, which costs $19.95 a year for individuals and $34.95 a year for families, offers 5%-40% savings for name brands and up to 80% for generics. Consumers must send in their prescription forms before Internet orders are filled.

The on-line drugstore business model makes sense in theory but not in practice, said InsightExpress president Charles Hamlin; people want the personal interaction they get with the local pharmacist. And Chris Robbins of consulting firm Arxcel told the paper that those planning to join a discount plan must ensure they do not have drug coverage through their insurance. If they plan to use a pharmacy rather than mail delivery to get their drugs, they must ensure the pharmacy is a member of the discount plan, and they need to see how the savings compare to the costs, if any, of joining the plan.

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