Friday, March 23, 2007

Birth control prices soar on campuses

The AP reports:
Millions of college students are suddenly facing sharply higher prices for birth control, prompting concerns among health officials that some will shift to less preferred contraceptives or stop using them altogether.


Prices for oral contraceptives, or birth control pills, are doubling and tripling at student health centers, the result of a complex change in the Medicaid rebate law that essentially ends an incentive for drug companies to provide deep discounts to colleges.

"It's a tremendous problem for our students because not every student has a platinum card," said Hugh Jessop, executive director of the health center at Indiana University.

There, he said, women are paying about $22 per month for prescriptions that cost $10 a few months ago. "Some of our students have two jobs, have children," Jessop said. "To increase this by 100 percent or more overnight, which is what happened, is a huge shock to them and to their system."
I guess we will find out what the price elasticity is for oral contraceptives on campus.