It looks like no other drug stores are doing this but Smith Drug feels it is the right thing to do. They want to help out uninsured patrons.
Last month, Smith Drug Co. began selling prescriptions at no profit for underinsured and uninsured customers – a move some doctors and industry observers call unprecedented in their experience.
"It's really not fair to the customers to take advantage of them," said Kaylei Mosier, owner of the 145-year-old store in McKinney's historic downtown.
Take the drug ciprofloxacin, a generic medication commonly prescribed to treat infections. For 20 500-milligram pills, customers spend $84.59 at Walgreens.com. CanadaPharmacy.com charges $36 for the same amount, based on a 100-pill order.
At Smith Drug, it costs $10.22, including a $7 charge for labor and overhead, according to a letter sent to doctors this month.
It's amazing that drugs get a 700% markup, and that this store would be willing to forego any markup.
Is it a bad business strategy?
"You have other pharmacies that would question the wisdom of doing that from a profit standpoint, but that would be a business question."
Carla Chandler, 42, has insurance that covers three of her five medications. For one of the others, she called every pharmacy in the area and says she was quoted about $240 at one store. At Smith, the bill was $16.68. Drug delivery was free.
"My mouth dropped open. I said, 'Excuse me, that can't be right,' " Ms. Chandler said when she learned the cost of her medication at Smith Drug. "If it wasn't for them, it would mean we would have to go without paying one of our major bills."
It seems to be a good business idea as doctors in the area are so impressed that they are urging both insured and uninsured customers to go to Smith Drug.
McKinney urologist Jerry Frankel, a member of Physicians for a National Health Program, said he tries to send all his patients, insured or not, to the pharmacy after learning of the new policy.
"You can't make a living just taking care of uninsured people," he said. "I'm trying to direct people with open minds and good insurance to go there as well."
I wonder how long this can last? Won't the insurance companies say that the pharmacy has to sell the drugs at the same prices to insured and uninsured?
