Instantly it gets your attention and makes you wonder, could it be some scam. Honestly, such prescription discount cards do cut the cost of prescriptions but not nearly 75%. Let's find out how they work and whether it saves money or not.
The Journal of American Medical Association mentions an average American spends about $858 per year on prescriptions. Yet, medicine prices remain high without appropriate intervention, and companies charge whatever price they like.
After inventing a medicine, pharma companies get exclusive rights to make and sell medicines for many years. During this time, they charge as much as patients are willing to pay. The individual patient does not have any bargaining power with them.
The prescription discount program negotiates deals with medicine stores and makes medicines available at discounted rates to patients. Companies that run these programs bank upon the higher sales for the stores.
Pharmacy benefits managers(PBMs) manage the program run by companies issuing prescription discount cards. They negotiate for discounted prices with pharmacies.
Note - You pay still lower than the retail medicine price without the card.
The answer is higher sales. Even if medicine stores make less profit on a single transaction, they cover their profit margins by making more gross sales. Prescription discount cards also help them build their brand loyalty.
2012 Consumer World studies indicate on average consumer saves around 16% on medicines with prescription discount cards. The actual amount varies from medicine store to store and the medicine you buy. The studies also found (in some cases) discount cards cut 71% of the medicine price and cases with no savings at all.
If you already have health insurance, prescription discount cards probably won't save you much. This is because the cards provide you a discount on the total medicine retail price, not the amount you pay with health insurance.
If your health plans come with a co-pay of 20%, it means they already gave you a discount of 80%. Most discount cards give you only a discount of 10% to 30%. Plus, you can't reduce your 20% co-pay share further with any prescription discount card.
If you don't have health insurance, a prescription discount card might not be the only option to save money. Mainly all chain pharmacies offer a generic medicine discount program. It allows you to
buy the generic version of common prescription medicines at a low, flat price.
Medicines under the generic discount program are priced from $4 for a 30-day supply to $16 for a 90-day supply. Compared to discount cards, you pay lesser with generic medicine programs even if it's the highest-priced under it. If you ask, sometimes local medicine stores also match the discount prices of the chains with generic medicines.
In prescription discount cards, saving isn't the only thing you need to consider. While choosing a prescription discount card, watch out for fees and other stipulations too.
Most prescription discount cards come free of cost, but some charge an annual fee. The discounts remain the same whether you pay a fee or not.
Sometimes companies market prescription discount cards to make money off your personal information. Before getting a card, check the company's privacy policy carefully to know how they will use it.
BBB rates companies on the scale of A-plus to F, based on factors like lawsuits and complaints from users. Get discount cards always from companies with higher ratings.
Reputed prescription discount card programs have toll-free helplines. Call on it to check how helpful they are. Companies with efficient helpline service serve you better when you run into problems with the card.
If you decide to get a prescription discount card, make sure you use it wisely.
Prescription discount cards are beneficial, but it's not the only option to save money at the pharmacy. Maximum people in America save most from buying generic medicines. You can also save using a mail-order pharmacy or a prescription assistance program. Bottom line - don't rely on prescription discount cards too much for saving money.