They described to us a pricing schedule that would be 40 to 50 percent less than what we would be paying otherwise. The Pequots refused to disclose profit figures and insisted they are not looking to put independent pharmacies or national chains like Walgreen or Rite Aid out of business. Yet industry executives are jittery. Mark Grayson, a spokesman for the Pharmaceutical Research and Manufacturers of America, said his organization fears the government has given the Pequots an unfair advantage. Shelly Carter, spokeswoman for the U.S. Bureau of Indian Affairs, said the Pequots' use of the discount is perfectly legal.
Hospitals typically get a lower price than drug store chains.
As the biggest consumer of pharmaceuticals in the world, the federal government gets the lowest price of all. Indian tribes are entitled to the same discount the government gets. Other Indian tribes also obtain cheap prescription drugs for their reservation health centers. But the Pequots are the first to set up a health care business that extends beyond their reservation. The Pequots get the government discount only for prescription drugs that go to people on federal assistance, such as Medicaid.