Owing to the soaring cost of medicine in the US, the state of Utah is offering its public employees a new incentive: $500 and a trip to Mexico to buy prescription drugs at a cheaper price.

“We can fly a health plan member to San Diego, have them picked up by private transport, receive the same drug as they would in the US from a hospital in Tijuana that meets US standards, give them a cash back incentive of $500, and still save between 40% to 60% for the employer,” said Chet Loftis, director of PEHP Health & Benefits, which insures some 170,000 public employees and their dependents.

The plan was first reported by the Salt Lake Tribune. It emerged this fall in the wake of a new law that requires the state’s insurer to offer cash or other savings rewards when patients choose lower-cost healthcare options.

Currently the plan applies to a specific set of expensive drugs used in the treatment of arthritis, autoimmune disorders, psoriasis, Crohn’s disease and prostate cancer.

According to the Tribune, in the US a 28-day supply of the MS drug Avonexruns about $6,700, while in Tijuana it might cost approximately $2,200.

“Everybody loves a good deal,” said Norm Thurston, the Republican congressman who sponsored the “right to shop” legislation.

Too often, he said, patients just take the prescriptions handed to them by doctors and then pay whatever price the local pharmacy might charge. Many don’t seem to consider shopping for drugs they way they might shop for other goods.

“We haven’t done a good job of engaging them as consumers,” Thurston said.

In the past PEHP has offered the option for some out-of-country medical procedures, Loftis said. But that program offered no financial incentives for patients and as a result had “no takers”.

“It’s one thing to offer zero for people to look at lower cost options, including going to Mexico,” he said. “With the cash back, rather than out of pocket, it actually puts money into your pocket.”

The plan only allows patients to obtain a single 90-day supply of drugs per trip. It also pays patients the cash bonus each time they travel – meaning they could potentially receive $2,000 over the course of a year.﻿