Contraceptives costs cause concern

A federal law that has been blamed for staggering hikes in the price of birth control on college campuses nationwide has had mixed effects at USC.

The New York Times recently reported that the price of contraceptives rose this year because of a provision in federal law. Though prices of name brand birth control pills have risen about $5 at USC, health officials say the university has taken steps to decrease the overall cost of all prescription medications.

The Deficit Reduction Act of 2005, which went into effect this January, alters how drug makers calculate Medicaid-related rebates paid to states. A provision in the bill also made it more expensive for companies to offer contraception to universities at discounted rates through clinic packs.

At some college clinics contraception prices jumped to as high as $50. Because USC students are required to be on an insurance plan, the majority of birth control users have not suffered from severe price increases.

"Many students are actually noticing a decrease in the cost of birth control at USC," said Dr. Lawrence Neinstein, executive director of the University Health Center.

Neinstein said pharmaceutical companies used to provide universities with birth control at low prices to encourage students to use their brands.

"Pharmaceutical companies offered discounted brand name contraception to college students with the intention students would become attached to their product and continue to use it after college," he said.

Over the past 10 to 15 years, however, more generic birth control options have been made available at a significantly lower price than brand name birth control, leading pharmaceutical companies to give less clinic packs, Neinstein said. The federal provision made distribution of clinic packs on campuses even less economical for the companies.

About 22,000 USC students are covered under the Blue Cross Insurance Plan, which allows students to purchase generic birth control for $10 and brand-name birth control for $25, after a $50 deductible, Neinstein said. Students who waive the university's insurance are typically covered by comparable plans.

Neinstein said the average price of birth control has dropped $5 because of the university's efforts to make all prescriptions more affordable for students covered under the USC Insurance Plan.

"We wanted the price of all brand name medicine to go down from $30 to $25 to make [medicine] more affordable for everyone," he said

But Kari Trotter, supervising pharmacist for the UPC Pharmacy, said the law did affect the way in which the pharmacy purchases birth control and has increased the price of certain brands that were previously offered in the discounted clinic packs.

"In actuality there has been an increase in price," she said. "We no longer receive clinic packs at discounted rates and have to purchase contraceptives directly from the manufacturer."

Previously, the USC Pharmacy was able to offer clinic packs to students at a discounted rate if the cost of birth control from their insurance plan was more expensive.

Trotter said the UPC Pharmacy previously offered clinic packs of Ortho Try-Cyclen Lo, a brand name contraceptive, to students for $20. The same contraceptive is now sold to students covered under the USC Insurance Plan for $25 - a $5 increase from the year before.

For many students, the slight price hike does not go unnoticed.

"I have noticed an increase in price from last year," said Shreya Oswal, a sophomore majoring in business administration who uses birth control for her skin. "But there isn't really anything you can do about it. If you have a pill that works for you, then you can't switch without being vulnerable to side effects."

Trotter said some students, however, are choosing to switch to a less expensive form of birth control because of the increase.

"Many students are upset the cost is higher," Trotter said. "And some are choosing to use a generic birth control over a brand name."

Though Trotter emphasized that generic birth control offers the same protection as brand names, many students who prefer widely marketed brands have found themselves seeking alternate, lesser-known methods to obtain their prescriptions at lower prices.

"When I first came to USC I purchased birth control from the USC Pharmacy, because I didn't know where else to get it," said Mary Atkins, a sophomore majoring in business administration. "Once I realized that Walgreens delivers pharmacy purchases, I started ordering from them."

Atkins is now able to purchase Yazmin, a brand-name contraceptive, for $20 from Walgreens on her personal insurance plan. It would cost her $25 to purchase the same pills under the USC Insurance Plan.

Despite the slight price increase, birth control is still the top medication that is sold at the UPC Pharmacy.

"Between the school year of '04-'05 and '06-'07 contraceptive sales increased by 20 percent," Neinstein said. "And in both years they were the No. 1 prescription."

Birth control sales were three times higher than the second most-popular prescription medication category, Neinstein said.

For students who are worried about the price increase, officials say the university is committed to making birth control affordable for everyone.

"I am always an advocate for women's health and getting contraception as reasonably priced as I can," Neinstein said. "I think one of the ultimate answers is to require all students have insurance and have basic medications and contraceptives be covered in that plan."

- Sarah Dada contributed to this report.