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Insurers pay big markups as doctors dispense drugs

The New York Times, July 12, 2012

At a time of soaring healthcare bills, experts say that doctors, middlemen and drug distributors are adding hundreds of millions of dollars annually to the costs borne by taxpayers, insurance companies and employers through the practice of physician dispensing. Most common among physicians who treat injured workers, it is a twist on a typical doctor's visit. Instead of sending patients to drugstores to get prescriptions filled, doctors dispense the drugs in their offices to patients, with the bills going to insurers. Doctors can make tens of thousands of dollars a year operating their own in-office pharmacies.