Prescription drug costs are climbing steadily every year, and since 1998, gross annual sales of pharmaceuticals have cleared the $100 billion mark continually, according to the National Association of Chain Drug Stores.

While skyrocketing prices are taxing enough for consumers, impoverished college students and elderly adults can sometimes find the increase in costs unmanageable.

In an effort to aid the University of Wisconsin student population, Linda Kanjo, Student Services Coordinator for the Student Health Insurance Plan, works daily to offer students the lowest possible costs for medical services, including prescription drugs.

“Right now, we are looking into buying popular prescription drugs in bulk, in order to offer the lowest prices possible,” Kanjo said. “Things like antidepressants and antipsychotics, which are the most common types of drugs used by college-age students — it would be nice to cut some sort of deal on those.”

Kanjo recognizes the fact that Americans pay much more for prescription drugs than people in other countries do. She said that for the most part, it is because pharmaceutical companies recognize that Americans have more money and subsequently charge them more.

“Americans do charge premium dollars for, hopefully, premium drugs, and I think that’s kind of the American way to be honest,” Kanjo said. “We have the big bucks, so we can afford to pay more for drugs. With new stuff coming out every day, who wouldn’t want to buy the one with little to no side effects?”

Kanjo went on to emphasize that this is a complex issue with no clear-cut answer. She feels that “this is something Congress has not been able to tackle with any sort of consistency.”

As far as the student health plan is concerned, Kanjo was quick to explain that SHIP is an optional service, and as a result, many students opt not to use it.

“The typical student population plays the odds, and if they’re feeling good, they won’t want to purchase the health plan,” she said. “As a result, most of the students who do purchase the plan are using it because they take prescription drugs.”

Kanjo then went on to explain that if the majority of students purchasing the health plan are doing so because they already know they will need the benefits, while students not currently on medications opt not to use the plan, that does not leave much money left over in the premium.

“Basically, I wish more healthy students would enroll,” she said.

The problem was so bad in the 2000-01 school year that SHIP almost ended completely. With more than $4.3 million in expenditures and only $3 million in premiums, the plan bottomed out and was close to being shut down indefinitely.

“It happened because there was unfettered access for users, there were no limits,” Kanjo said. “Plus, health-care inflation just went through the roof, and the combination was devastating.”

As a result of the vast overspending, SHIP coordinators were forced to rein in prescription drugs dramatically. Students are now required to go through student health-care services before they can receive the benefits of SHIP.

“What we have in place now is about as good as it gets with a voluntary system,” Kanjo said.

One problem plaguing the prescription drug industry mentioned by Kanjo is the widespread use of online drug-ordering services.

“You can go online and purchase expensive prescription drugs via some mail-order Canadian company for much cheaper,” she said. “The problem with that is you never know exactly what you’re going to get, and pharmaceutical companies just raise their prices as a result.”

According to Kanjo, it is going to take a large effort on everyone’s part to really make some changes in the prescription-drug industry.

“We have such an ability to do things with a captive audience,” Kanjo said, referring to the fact that UW is a large enough campus to make an impact on legislation concerning health-care costs.

“It’s the kind of thing that’s going to take the village,” she said. “But if we can do it, why not try, you know?”