What is the difference between savings cards and drug coupons?

In the United States, the affordability of prescription medications is a significant concern for patients, with approximately 49% of individuals using at least one prescription medication monthly. Many patients face financial barriers due to a lack of health insurance, high deductibles, or copayments, leading to difficulties in accessing and affording their medications.

To address this issue, various cost-saving programs have emerged, including manufacturer-sponsored programs, pharmacy-specific savings plans, and prescription discount cards. Among these options, prescription discount cards have gained popularity as they provide savings on both brand and generic medications, offering an affordable alternative for patients without insurance coverage or high out-of-pocket costs.

This comprehensive guide aims to provide a deeper understanding of prescription discount cards, how they work, and the considerations associated with their use. We will explore the benefits and risks of prescription discount cards, discuss how they differ from other cost-saving programs, and offer insights for pharmacists and patients alike.

The importance of affordability in patient care

Affordability is a critical consideration in patient care, given the rising costs of prescription medications in the United States. From 2007 to 2018, list prices for branded medications increased by a staggering 159%, with net prices rising by 60%. This upward trend in medication costs has resulted in financial barriers for patients, leading to medication non-adherence and inadequate disease-state management. Recognizing the impact of these barriers, healthcare professionals must address the affordability of medications to ensure better patient outcomes.

Cost-saving programs

To alleviate the burden of high medication costs, various cost-saving programs have emerged. These programs aim to provide patients with affordable options for accessing their prescribed medications. Three primary types of cost-saving programs are commonly used: manufacturer discount programs, pharmacy-specific savings plans, and prescription discount cards.

A. Manufacturer discount programs

Manufacturer discount programs, also known as manufacturer-sponsored prescription coupons, are offered by pharmaceutical companies to promote the use of specific brand medications. These programs typically involve the combination of manufacturer coupons with commercial insurance to reduce copayments for a limited period. However, once the manufacturer coupon expires, patients may no longer be able to afford the brand medication, leading to adherence issues.

B. Pharmacy-specific savings plans

Certain pharmacies have developed their own savings plans to make prescription medications more affordable for patients. Unlike manufacturer-sponsored programs, these savings plans primarily focus on offering discounts on generic medications. For patients with insurance coverage, copayments under these savings plans may or may not be more cost-effective than using insurance. However, for patients without any prescription coverage, pharmacy-specific savings plans can significantly help manage medication costs for various disease states.

C. Prescription discount cards

Prescription discount cards provide savings on both brand name drugs and generic medications, making them a versatile option for patients with high out-of-pocket costs or insufficient insurance coverage. These cards can be used at many pharmacies across the United States, offering valuable discounts that may be more cost-effective than other cost-saving options. Additionally, prescription discount cards can also be used for pet medications, providing pet owners with financial relief regardless of pet insurance coverage.

How prescription discount cards work

Prescription discount cards are typically available at no cost and can be easily obtained through the internet or mobile applications. Patients present these cards to participating pharmacies in a similar manner to insurance cards for processing. It’s important to note that prescription discount cards cannot be combined with prescription coverage, meaning that medication costs will not be applied towards insurance deductibles or out-of-pocket maximums. Understanding the process behind prescription discount cards involves recognizing three main entities: the pharmacy benefits manager (PBM) or administrator, the pharmacy, and the marketing company.

The PBM creates the discount program and negotiates discount prices with participating pharmacies. They collaborate with marketing companies to promote and advertise the discount cards. Participating pharmacies honor various discounts on prescription medications as part of the program, using prescription discount plans as a means of building patient loyalty and increasing overall revenue.

Considerations for prescription discount cards

When considering the use of prescription discount cards, it is essential to evaluate the potential benefits and risks associated with these programs. The primary benefit is cost savings for patients, which can be obtained at no cost through various discount cards. Patients have the freedom to compare medication prices offered by different cards online or via mobile apps to determine the most cost-effective option. It is crucial, however, for patients to exercise caution when providing personal health information. Some card marketers may collect personal information and sell it to companies for targeted marketing purposes. Patients should carefully read each discount card’s privacy policy and avoid sharing unnecessary information.

Prescription discount cards may not ask for personal information and may only require the name, strength, and quantity of the medication to receive the discount. It’s important to note that the costs of prescription medications can fluctuate, resulting in varying discounts on different days. Therefore, patients are advised to check discount prices immediately before visiting the pharmacy to fill their prescriptions. Pharmacists should also be aware that claims processed using prescription discount cards involve cash transactions, limiting the ability to measure and ensure adherence.

Benefits of prescription discount cards

Prescription discount cards offer several benefits to patients who face financial barriers to medication access. The most significant advantage is the cost savings provided by these cards, allowing patients to obtain their prescribed medications at significantly reduced prices. The discounts offered by prescription discount cards can reach up to 85% on both brand and generic medications. This level of savings can be crucial for individuals without insurance coverage or those facing high out-of-pocket costs. Additionally, prescription discount cards can be used for pet medications, providing relief for pet owners who often have to pay out of pocket regardless of pet insurance coverage.

Risks and privacy concerns

While prescription discount cards offer significant benefits, there are also risks and privacy concerns associated with their use. Patients need to be cautious when sharing personal health information with discount card marketers, as it may be sold to third-party companies for marketing purposes. Reading and understanding each discount card’s privacy policy is essential to ensure the protection of personal information. However, reputable prescription discount cards often do not require extensive personal information and maintain patient privacy.

Comparing prescription discount cards with other programs

Prescription discount cards differ from other cost-saving programs, such as manufacturer discount programs and pharmacy-specific savings plans. Manufacturer discount programs primarily focus on promoting specific brand medications through the use of drug manufacturer coupons. These coupons, combined with commercial insurance, lower copayments for a limited time. However, patients may face challenges when the manufacturer coupon expires and they can no longer afford the brand medication.

Pharmacy-specific savings plans, on the other hand, primarily offer discounts on generic drugs. For patients with insurance coverage, copayments under these plans may or may not be more cost-effective than using insurance. However, for patients without prescription coverage, these savings plans can significantly help manage medication costs for various disease states.

Prescription discount cards provide savings on both brand and generic medications, offering a more versatile option for patients facing high out-of-pocket costs or insufficient insurance coverage. These cards can be used at pharmacies nationwide, providing discounts that may be more cost-effective than other cost-saving options.

Popular prescription discount cards

Numerous prescription discount cards are available for use at tens of thousands of pharmacies across the United States. While the actual savings can vary from pharmacy to pharmacy and card to card, these programs offer valuable discounts on prescription medications.

Each of these programs has its own unique features, discounts, and participating pharmacies. Patients can compare the benefits and savings offered by different prescription discount cards to determine the most suitable option for their needs.

Tips for using prescription discount cards

To make the most of prescription discount cards, both pharmacists and patients should keep the following tips in mind:

• Compare prices: Patients should compare the prices offered by different prescription discount cards to find the most cost-effective option for their medications
• Check discounts regularly: As medication costs can fluctuate, patients should check discount prices immediately before visiting the pharmacy to fill their prescriptions
• Protect personal information: Patients should carefully read the privacy policies of discount cards and avoid sharing unnecessary personal information
• Be aware of limitations: Prescription discount cards cannot be combined with prescription coverage, meaning that medication costs will not be applied towards insurance deductibles or out-of-pocket maximums
• Advocacy for affordable medications: Pharmacists should familiarize themselves with discount card programs and other prescription savings options to advocate for the most affordable medications for their patients

Pharmacists’ role in advocating for affordable medications

Pharmacists play a crucial role in advocating for affordable medications and helping patients navigate the complexities of prescription discount cards. By understanding how discount cards work and the benefits they offer, pharmacists can assist patients in managing their prescription expenses and addressing potential adherence issues related to financial barriers. Pharmacists should also stay updated on the latest discount card programs and educate patients about their options for accessing affordable medications. By actively engaging in conversations about medication affordability, pharmacists can contribute to better patient outcomes and improved disease-state management.

Conclusion

Prescription discount cards provide a valuable solution for patients facing financial barriers to medication access. These cards offer savings on both brand and generic medications, making them a versatile and affordable option for individuals without insurance coverage or high out-of-pocket costs. While there are risks and privacy concerns associated with prescription discount cards, patients can make informed decisions by understanding the potential benefits and exercising caution when sharing personal information. Pharmacists play a crucial role in advocating for affordable medications and should familiarize themselves with discount card programs to provide the best guidance to their patients. By working together, patients and healthcare providers can ensure better medication adherence and improved disease-state management.

Sources 

• FastStats – Therapeutic Drug Use – CDC
• KFF Health Tracking Poll – February 2019: Prescription Drugs | KFF
• Addressing Affordability – Costs of Care’s Clear Focus – Costs of Care
• Dr Christina Polomoff Discusses the Complex World of Medication Discount Cards
• Best Prescription Discount Cards of 2023
• Drug Discount Cards – Lifting the Veil of Secrecy – Costs of Care
• GoodRx Said to Buy Perelman’s RXSaver Business for $50 Million – Bloomberg