The Costco Connection

Likewise, a recent price comparison in the Seattle area found a tetanus shot at Costco costs $48.99, about $10 lower than at a typical grocery store; a flu shot at Costco was $14.99, compared to $63.99 at a national drugstore.

I am surprised at the significant price differences, and ask Michael if Costco is using lesser-quality vaccines. He emphatically says no.

“The immunizations at Costco are the same as
you’d get from your doctor or any other pharmacy,”
he says. “They are the same FDA [Food and Drug
Administration] approved vaccines.”
Michael is working on adding travel vaccinations
to the mix as well. He says they are being tested in 18
locations, and he hopes to offer them nationally soon.

“Fair”-thee-well

Another helpful service is the health screening fairs held at the pharmacies on various Saturdays throughout the year. Each event focuses on a different health issue: osteoporosis, lung health and cardiovascular disease, with diabetes screening to be added later this year.

At the osteoporosis event, a patient’s bone mineral density is screened using a device that looks like a foot massager and uses ultrasound waves to scan the heel bone. The test takes only a couple of minutes, and the results, which are available immediately, indicate risk level for a bone fracture.

The lung and cardiovascular health fairs are similar. “The lung test uses a little device you blow into to measure lung function,” Michael says. “It is indicative of the health of your lungs, particularly looking at things like asthma, COPD [chronic obstructive pulmonary disease]—stuff like that.

“We also do cardiovascular screening, where we
do cholesterol testing [through a finger stick blood
draw], a blood pressure test and something called a
Framingham analysis, which indicates what your
cardiovascular risk is over the next 10 years.”
All of the screening events are free, Michael
says, although they have a value of $20 or more. But
the biggest benefit is that a pharmacist sits down
with each patient to explain the results of the test.

“Other retailers will hold health fairs,” he says, “but they are completely outsourced—somebody

COSTCO FREQUENTLY makes the news for having much lower prescription drug prices than other pharmacies. How?

Vic Curtis, Costco’s senior vice president, Pharmacy, gave me several reasons.

; While some other pharmacies buy their medication from a single source, Costco buys regionally from several different sources. This allows the company to compare prices and buy high-quality products at the best available cost, saving members money.

; Costco operates its pharmacies primarily during hours when doctors are writing prescriptions. This maximizes pharmacy productivity, and this efficiency lowers the average cost to fill a prescription, allowing Costco to pass the savings on to its members.

; Costco has automated the filling of prescriptions.

; While other pharmacies tout $4 pricing for a 30-day supply of generic drugs, Costco offers greater value by providing a 90-day quantity. “We’d rather sell somebody a 90-day supply for less than $10 or even $7 in some cases,” Vic explains, noting that larger-quantity prescriptions create efficiencies. “It’s the same amount of labor to put one tablet in a bottle or 90.”

; Many retail pharmacies charge different prices from state to state, or even at different locations in the same city.

Costco does not. “We try to provide pricing consistency for our members,” Vic says, “so they don’t see a dramatic difference in price from one geographic area to another.”—KJ

How are
Costco
Pharmacy
prices so low?

GENERIC VERSION OF: COUNT COSTCO RETAILER 1 RETAILER 2

Lipitor 90 $32.50 $90 $87

Celebrex 100 $208.23 $556 $289

Plavix 90 $24.12 $90 $91

Savings you can count on

MI CR O VE C TOR / S H U T TE RS TO CK PRICES OF GENERIC VERSIONS OF THESE BRANDED DRUGS BASED ON SURVEYS TAKEN IN APRIL 2015

comes in, they set up a table and the pharmacist has nothing to do with it. We like the model where somebody you know, whom you trust and do business with, will explain to you what the results mean.”

The pharmacists like it, too

Sean Shahkarami, a Costco pharmacist for 11 years, says the screening events give him a chance to come out from behind the counter, interact with members and help them with their health.

“I especially like the osteoporosis one because it’s very educational for patients,” he says. “It only takes a few minutes to run the test, but then I can use my expertise to talk to them about calcium supplements for bone health and how vitamin D dramatically increases the absorption of the calcium.

“They can take the results of the test to their
doctor and say, ‘I was at Costco, they ran this test,
would I benefit from taking calcium and vitamin D?’
Many times I have people coming back and saying,
‘Thank you for giving me that information. I talked
to my doctor and I do need to take vitamin D.’
“We’re making a difference,” he says. “It is very
exciting. With our schooling and knowledge we
are able to take a huge leap toward getting more
involved with patients’ health-care needs and pro-
viding pieces of information that help complete
the puzzle.”
He adds, “The doctors, the nurses, the pharma-
cists—we all have the same goal: a healthier patient.”
Visit Costco.com for more information on
Costco Pharmacies. To find an upcoming health fair
near you, search “health fairs.” C

VIC CURTIS, Costco’s senior vice president, Pharmacy, offers these tips for saving at Costco.

; Costco members who
pay for their medication out-
of-pocket can enroll in the
free Costco Member
Prescription Program
(CMPP). It offers lower prices
for prescriptions, with sav-
ings of up to 40 percent.

Enrollment is open to Costco members and their dependents who have no prescription drug insurance or whose insurance does not cover all of their medications. For more information, visit a Costco Pharmacy or go to Costco.com and search “CMPP.”

; If you don’t have insurance, buy generics where you can and where it makes sense. For the prescriptions you buy on a regular basis, ask your doctor if it’s possible to prescribe a 90-day supply.

Larger quantities can save money on a per pill basis.

; If you have insurance, ask what the price of the medication would be if you paid out-of-pocket for it instead. Sometimes buying a 90-day supply and paying the cash price is a better value than buying 30-day supplies under insurance and paying three insurance co-pays. Vic cautions that if you have Medicare Part D, this approach is generally not recommended. Paying cash means the purchase does not count toward your insurance deductible and could prevent you from reaching catastrophic coverage and the benefit of lower co-pays.—KJ