Let's talk about prescription drug costs

[mrmpa]

Okay here's my befuddlement:

My mom is 80 she has prescription drug coverage (PACENET in
PA) through the state.  When she uses her insurance she is
charged $30 a month (cost for the insurance) $8 for generic
and $15 for non generic prescriptions.  She can only get a 30
day supply of the medication.

I switched all her prescriptions to a pharmacy that charges $4
for a month for generic and $10 for a 3 month supply.  We do
not allow this pharmacy to use her insurance.  This pharmacy
also has antibiotics at no charge.  She has only one
medication generic but the state system won't pay for it and
the new pharmacy doesn't have it on the $4/$10 program.  So
she pays out of pocket $30 a month for it.  

Prior to the change she budgeted $120 a month.  The change is
now budgeted at about $100 every 3 months.  A savings of about
$1000.

My question is why did her drugs cost more with an insurance
plan than they do without using it.  If the drug costs less
than $4 (it has to for the pharmacy to make a profit) why was
her insurance copay $8.  The insurance plan definately has to
be making a profit.

The same goes for my employer sponsored health plan.  The cost
for generic under my plan is $5, but I can get the same
medication for $4.  Who's earning the profit?

I also wonder how many seniors, don't have someone that can
figure out how they can save money by not using their
insurance.