Markup on Test Strips
Hey You Guys,
Can you believe that the markup on glucose test strips is roughly 900%?!
That's what I've learned from LA Times columnist David Lazarus, who wrote a Guest Post on DiabetesMine.com today: http://www.diabetesmine.com/2009/06/a-year-and-a-half-with-the-diab...
When queried on the number, he tells me "That figure was from a column I wrote on the subject a year or so ago. Looks like it costs 10 cents or so to produce each strip. So at a retail price of $1, you have one of the biggest markups in the business world – especially for a product whose R&D costs were covered long ago."
Ouch!!
Can you believe that the markup on glucose test strips is roughly 900%?!
That's what I've learned from LA Times columnist David Lazarus, who wrote a Guest Post on DiabetesMine.com today: http://www.diabetesmine.com/2009/06/a-year-and-a-half-with-the-diab...
When queried on the number, he tells me "That figure was from a column I wrote on the subject a year or so ago. Looks like it costs 10 cents or so to produce each strip. So at a retail price of $1, you have one of the biggest markups in the business world – especially for a product whose R&D costs were covered long ago."
Ouch!!
Tags: costs, coverage, finances, glucose, insurance, meters, monitors, strips, supplies, test
Replies to This Discussion
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Permalink Reply by Scott on -
You know, if we can get a congressional inquiry into why text messages cost so much...
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Permalink Reply by Andreina Davila on -
I read about this in your blog a while ago, when we were working in the diabetes supplies video. For me it is terribly frustrating and sad... when so many people stop testing because they can't afford the cost of the strips. It is just too much.
There has to be so kind of regulation on this. 900% of markup on supplies that are vital for so many people.. it just makes me sick...
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Permalink Reply by Mark Hagen on -
I have to hope it isn't true. But I think I need to invest in the meter/strip companies.
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Permalink Reply by Anna on -
I suppose they can say they put so much work into research and developing them, they have to have a high markup. (I still think it's incredibly wrong, but I'm just guessing what reason they would give.)
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Permalink Reply by Amanda on -
i'm going to pretend i didn't read this...especially since i don't have insurance!!
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Permalink Reply by Jason on -
Well, if you read the article, you'll see that the degree of markup is merely his opinion, and purely speculative.
The price of test strips is inflated, I believe because of medical insurance standing in the middle between most consumers and their strips. If everyone had to pay out of pocket for strips, you'd see the price go down significantly. The worst part of this is that people without insurance have to pay essentially what the insurance companies pay for strips- and given the size of the insurance companies' wallets and their mandate to pay for the product, we know the manufacturers aren't giving them bargains.
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Permalink Reply by lev on -
that is not true, most insurance companies pay about half the asking price, those without insurance pay full price
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Permalink Reply by nel on
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In North America : wonder what was better ...I recall my first glucometer meter 1985( ? ) ....CAN $ 279,00 , strips about $ 17,00 for a vial of 50 ( or was it 25 ??) ...today one can obtain most often free meters . I agree these present numbers are outrageous .
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Permalink Reply by Danny on
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Hey, Nel ... do you remember the suitcase you had to carry your glucose meter in? I was the only 8th grader to carry a briefcase to junior high....too funny
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Permalink Reply by Ryan on -
I agree, its an outrage. I've noticed the "you saved $XXX on this prescription" and my jaw dropped open. I think what we as patients pay is closer to the price that covers materials and research and development, the price that the insurance companies pay is pure profit. Hopefully some of that profit is reinvested in cure research and better insulin, pumps, and treatments.
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Permalink Reply by Kristin on -
Just to offer some insight from another part of the world, I live in Hungary and I have a meter produced by a Hungarian company (Elektronika 77-- reviewed by David Mendosa as one of the most accurate meters) and the test strips for the meter are actually manufactured by Accu-chek. Point being, this is a GOOD meter, but available only on the Hungarian market.
Here are the prices for meter and strips WITHOUT government support:
Meter = 45 US dollars
Strips = 15 dollars for 50 strips = 30 cents per strip
That tells me that in a different system, test strips CAN be cheaper.
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Permalink Reply by Anthony Holko on -
In canada the meters are usually provided free in somesort of promo. Strips are on sale for about 0.65 canadian funny money each (about 58 cents US varies a lot ) minus a very small deduction on your income tax. Still more than in Hungary and less than in the USA except for Wal-Mart test strips which are unavailable at Canadian Wal-mart.
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