6 Ways to Save Money on your Prescriptions
You have insurance, so why the heck do you have to pay so much for your medications? According to a study done by Actuary.org, the United States spends more than 17.9% of its GDP on health expenditures, drug costs accounting for nearly $320 billion in spending alone. The same study found that the US pays on average 5-117% more than 6 other countries included in the study for commonly prescribed drugs. We’ll take a deep dive into the reasons why the US pays more in another post but for now, we wanted to share some common ways we see folks are able to save money on their prescriptions. While this article might not be a solution for all we wanted to share some common options we explore.
1.Coupons
We see savings using a coupon vs. paying with your insurance almost every day. There are many websites that offer and provide coupons; GoodRx.com, RxSaver.com, etc. A simple Google search will spurn hundreds of results. Coupons are a great way to save money on prescriptions, especially if a drug you’re taking is counting towards a deductible or is not covered by Medicare. A fairly common drug we see is Sildenafil/Tadalafil, generic alternatives of Viagra/Cialis. Even though these drugs can be prescribed for medical reasons and not just for a “good time” Medicare won’t cover them at all. Full retail, these generic medications can run upwards of $200 for 30 pills. Use a coupon instead and you could pay less than $10 for the same amount in some cases. Coupons may not help you lower the cost of everything but they are the most common solution/alternative to getting drug costs lowered outside of your insurance.
2. Generic vs. Brand
Another common way we see savings on drug costs is with generic medications vs. brand name medications. Generic medications can only become available after the patent for the brand name version has run out. This can take 20 years in some cases so it’s not always a possibility to take the generic version, unfortunately. We’ll use the drug Synthroid as an example. Synthroid is prescribed to treat hypothyroidism among other things. For 90 tablets, Synthroid costs about $130. Levothyroxine, the generic alternative to Synthroid costs about $25 for 90 tablets. With insurance, both prices are usually lower but the generic version is much lower in most cases and even a $0 copay on a lot of plans. We can’t make medical recommendations here and any changes to your drugs will need to be discussed with your prescribing doctor. This is just another common way we see people getting the drugs they need at a lower cost.
3. State Assistance/LIS
If you earn a lower income you may qualify for State Assistance and Low Income Subsidies to help pay for your prescription costs. The rules for eligibility can be pretty stringent but if you are eligible, this can be a great way to pay much less on all of your prescriptions. You can find more information and apply online at: https://secure.ssa.gov/i1020/start , or by calling your local Social Security office.
4. Savings Programs
Specialty medications are expensive no matter which way you look at it. We commonly see certain cancer drugs and biologics priced upwards of $10,000 full retail. On Medicare, these specialty medications are Tier 5 drugs where you pay 25% of retail. That means the $10,000 drug is going to cost you $2500 out of pocket, for 1 month. A potential way to lower the cost of the medication is with a discount or Pharmaceutical assistance programs. There are various ways to go about exploring these programs but we use the site NeedsMeds.org to search for available programs based on medication. The drug manufacturer may also have copay assistance programs which are detailed on the drugs website.
Unfortunately a lot of these programs have limitations for people on federal health plans (Medicare). Some also take income into consideration so do your research before applying. It may also be a good idea to speak with your doctor as they may know of programs and workarounds that could help as well.
5. Canada
Something we’re seeing gain a lot more traction lately is mail order drugs from Canada. On average, Canadians pay about 40% less for the same medications as in the US. There are numerous reasons why that is but the main reason being; the Canadian government can negotiate prices directly with the manufacturer. Those negotiations are done privately in the US. However, people have been turning to Canadian Mail order pharmacies for years to pay less. There are some things to consider when exploring this:
1. The drugs may not be manufactured in Canada. A lot of people think the drugs themselves are made in Canada. This is often not the case, a lot of the time the drugs are manufactured in countries like India or China and sold to Canadian pharmacies. While it’s the same drug, the manufacturer may not be a “household” name.
2. Legality. Currently there are little to no restrictions from purchasing your drugs from Canada. With money going over the border and feeding another country's economy, the US government may at some point step in and put a stop to or restrict this option. Meanwhile, some states are asking the federal government to allow them to import drugs from Canada so unfortunately, this is a bit of a grey zone.
6. Finding the right insurance
Probably the best way to save money on your drugs is to find the right drug plan in the first place. There are many available plans out there and making sure you have a plan that covers your drugs at a low cost is important to review on a yearly basis. At Doctor’s Choice we have a team of specialists trained to look at your complete situation and help you find the coverage that will fit your needs within your budget. Call us at 401-404-7373 or send an email to help@doctorschoiceusa.com and schedule a no cost consultation today.
Sources:
https://www.actuary.org/content/prescription-drug-spending-us-health-care-system
https://www.fda.gov/drugs/questions-answers/generic-drugs-questions-answers#q2
