Contraceptive prices increasing for colleges
Greg Ylvisaker and Jerica Harvey
Issue date: 2/6/08 Section: News
The University Health and Counseling Services is among many university clinics in the United States being forced to raise the cost of contraceptives due to the 2005 Deficit Reduction Act.
The new federal law, which went into effect January 2008, was developed to control which organizations would be eligible for a traditional 90 percent reduced rate and prevent pharmaceutical companies from trading low prices for promotions of their products.
Pharmaceutical companies have had agreements with campus clinics since 1990 to offer brand name drugs for low prices. However, the new law mandates college lenders who distribute drugs at higher rates must give excess profit back to the government rather than keep it or pass savings on to college clinics. Inadvertently, discounts on drugs such as birth control for universities have become too expensive for pharmaceutical companies to afford.
Director of Health Services Ruth Swisher said this law could affect how the UHCS serves students.
"We were very concerned. We want students to have the opportunity to protect themselves ... our goal is to allow students to have affordable choices," she said.
Contraceptives were accessible to students at average prices between $5 and $10 per monthly cycle. Prices have recently risen and are expected to remain at $14 to $20 while supplies last.
According to Katherine Banna of the UHCS business office, UW-Whitewater purchased approximately a one year supply of contraceptives at the discounted prices.
As the stockpile runs out, prices are expected to increase to as much as $50. However, the clinic is considering a switch to generic brands in order to keep costs low.
Junior Jen Schaar was previously unaware of the impending rise in prices.
"If I bought birth control from campus, I would expect it to be at a price that I can afford," she said.
The Prevention Through Affordable Access Act was introduced by Sen. Barrack Obama, D-Ill., and Sen. Claire McCaskill, D-Mo, to the U.S. Senate Nov. 13, 2007. If passed, the act would once again increase the affordability of birth control for college clinics and safety-net providers.
The new federal law, which went into effect January 2008, was developed to control which organizations would be eligible for a traditional 90 percent reduced rate and prevent pharmaceutical companies from trading low prices for promotions of their products.
Pharmaceutical companies have had agreements with campus clinics since 1990 to offer brand name drugs for low prices. However, the new law mandates college lenders who distribute drugs at higher rates must give excess profit back to the government rather than keep it or pass savings on to college clinics. Inadvertently, discounts on drugs such as birth control for universities have become too expensive for pharmaceutical companies to afford.
Director of Health Services Ruth Swisher said this law could affect how the UHCS serves students.
"We were very concerned. We want students to have the opportunity to protect themselves ... our goal is to allow students to have affordable choices," she said.
Contraceptives were accessible to students at average prices between $5 and $10 per monthly cycle. Prices have recently risen and are expected to remain at $14 to $20 while supplies last.
According to Katherine Banna of the UHCS business office, UW-Whitewater purchased approximately a one year supply of contraceptives at the discounted prices.
As the stockpile runs out, prices are expected to increase to as much as $50. However, the clinic is considering a switch to generic brands in order to keep costs low.
Junior Jen Schaar was previously unaware of the impending rise in prices.
"If I bought birth control from campus, I would expect it to be at a price that I can afford," she said.
The Prevention Through Affordable Access Act was introduced by Sen. Barrack Obama, D-Ill., and Sen. Claire McCaskill, D-Mo, to the U.S. Senate Nov. 13, 2007. If passed, the act would once again increase the affordability of birth control for college clinics and safety-net providers.
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