INS AND OUTS OF ORDERING DRUGS ON INTERNET

It wasn't the first drugstore on the Net and it won't be the last. But
the opening of the site, owned in part by Web retail giant Amazon.com,
has focused attention on the rapidly developing area of
cyberpharmacies.

Last year, Americans spent $440 per person on prescription and
over-the-counter drugs -- more than they spent on books, music CDs and
videos combined. It's a big market and one that lends itself very well
to online shopping, according to Web retailers and Internet analysts.

But how will the cyberpharmacies work? As one analyst said last week,
selling health products over the Web is not like selling books. It's
far more complex:

Q How do online pharmacies work?

A For the time being, you will need to enter your prescription
yourself, including information such as the type of drug, size of
prescription, the doctor's name and phone number and -- of course -- a
credit card number. Drugstore.com (www.drugstore.com) -- or its
competitors -- calls your doctor to confirm the prescription and then
ships the drugs to you via 46ederal Express or regular mail.

Q What if I need antibiotics immediately because my child has a fever
or an infection?

A The Web pharmacies admit that for drugs needed for acute conditions
- -- something you need immediately -- you'll want to go to a
brick-and-mortar drugstore.

Q So why shouldn't I just keep using the drugstore down the
street?

A Web retailers and analysts note that more than half of all drug
prescriptions are for chronic conditions. That means drugs you need to
take on a regular, as opposed to emergency, basis. If you have, for
example, arthritis or an allergy and need to refill a prescription
every month or so, the Internet pharmacies may be a good bet. In fact,
both Drugstore.com and its main competitor -- PlanetRx.com
(www.planetrx.com), which goes online this month -- will send you
e-mail reminding you when a prescription needs to be refilled.

Q Why can't my doctor simply send the prescription directly to the
online pharmacy?

A Your doctor can, by fax or e-mail. But many doctors' offices are not
yet hooked into the cyberworld. The backers of cyberpharmacies say
they expect that within three years, most doctors will have the
technology and the willingness to send prescriptions
electronically.

Q Can I talk to a pharmacist about my prescription?

A Yes, in an electronic way. All the pharmacies now online offer
customers the chance to ask questions by e-mail and get quick
responses. And the sites, notably the well-done Soma.com
(www.soma.com), have lots of editorial material on health and wellness.

Q I've heard that you can't order prescription drugs online in some
states. Is that true?

A For now, yes. As of last week, for example, Soma.com could deliver
drugs in only 30 states, not including California, while awaiting
licensing from the various states. Drugstore.com can deliver
nationwide only because its drug provider is licensed in all 50
states. It's only a matter of time, though, before the sites will be
licensed nationally.

Q My insurance company covers most of my drug prescriptions. Will it
pay for online prescriptions?

A Maybe, and right now, it's a big maybe. Drugstore.com says it has
agreements with insurers covering 70 million people; PlanetRx says it
is doing well on signing up insurers. But some big insurers --
including segments of the Blue Cross-Blue Shield empire -- are showing
some reluctance to sign up with the Web pharmacies. Part of the reason
is that some have long-term relationships with mail-order drugstores
that now handle about 13 percent of all refills in this country. Check
with your health insurance company before placing an order.

Q If my insurer does cover online prescription orders, do I pay the
full amount and then get reimbursed?

A No. It's handled as it is in the physical world. Drugstore.com and
others will charge you your co-payment -- usually $5 -- and bill your
insurer for the rest.

Q OK, so I order a refill, get charged my $5 co-payment and then get
billed for shipping?

A Yes. That's one reason the big drugstore chains and even corner
pharmacies are saying there won't be a big rush to online sites.
Shipping will be $4.95 per order unless you order a certain amount,
$75 in the case of Drugstore.com. Then shipping is free. So if you
order a single prescription, you may very well be paying as much for
shipping as you are for the drugs. Smart shoppers will probably wait
and order a number of items at the same time to avoid the shipping
fees. (The shipping charges on drugs are based on the overall cost of
the prescriptions, not the size of the co-payment.)

Q I'm a little concerned that someone might steal my prescription if
it's delivered to my home.

A There's always that chance, and to help ensure that you actually get
your delivery, the Web pharmacies are planning to send out orders in
plain, brown paper packages.

Q Let's get to the bottom line: How good are the prices?

A We'll be doing a more thorough comparison after PlanetRx goes online
later this month, but it appears that, indeed, the prices on
over-the-counter drugs and health and beauty products at the sites
that are operating -- Drugstore.com and Soma.com -- are cheaper than
the big drugstore chains. For example, a bottle of Advil was about
$1.50 less at Drugstore.com than at a neighborhood pharmacy. Again,
however, the savings will come from ``bundling'' orders so you avoid
the delivery charges.

Q What about sales tax?

A It's not an issue with prescription drugs since no state levies a
sales tax on those items. Anything else -- including over-the-counter
drugs -- are taxed in most states. Online sites rarely charge sales
tax on items unless the site is headquartered in the state the order
comes from. Sometime in the next couple of years, the federal
government is expected to step in and probably level the playing
field, but, for now, you usually avoid the sales tax online.

Q What, besides drugs, will I find on these sites?

A The Web pharmacies are glad you asked because, like drugstores in
the physical world, they're planning on making much of their profit on
non-drug items like vitamins, Band-Aids, cosmetics and toilet paper.
Most of the sites are offering between 15,000 and 30,000 products for
sale, the bulk of which aren't related to your drug needs. That's far
more than can fit in your average Longs or Walgreen's