8 Steps You Can Take to Lower the Cost of Your Prescriptions

Posted on April 25, 2023

The cost of medication in the US tends to run higher when compared to other countries - due to various factors, including the lack of price controls on prescription drugs, the high cost of research and development, and the complex supply chain between drug manufacturers, pharmacies, and consumers. In 2019, the latest year in which data is available, private insurers and government health programs spent $973 per capita on prescription drugs, while comparable countries spent an average of $466

Sixty-six percent, more than 131 million adults in the United States, use prescription drugs. Utilization is exceptionally high for older people and those with chronic conditions (diabetes, high blood pressure, chronic obstructive pulmonary disease – COPD, and others), resulting in substantial drug expenses.

People age 65-79 pay $456 out-of-pocket, and people age 80 more senior pay even more. Since their total prescription drug expenditures are very high, their out-of-pocket expenditures are also high. They pay about half the cost of prescription drugs out-of-pocket. For example, adults with diabetes pay almost $700 out-of-pocket each year.[i]

Cost Affects Compliance

Some people take less medication than prescribed because of the cost. For example, among adults who report poor health, about one-fourth – 25 percent – of people aged 51-64 and more than 12 percent of people aged 65 and older say they have taken less medication than prescribed in the past two years due to cost.[ii] Similarly, people with common chronic conditions also report they take less than the specified amount of medication.

Unfortunately, taking less medication than prescribed may increase overall healthcare costs and often result in more emergency room visits, hospital admissions, or physician visits.

Compared to Other Countries

The cost of medication in the US tends to run higher when compared to other countries. This is due to various factors, including the lack of price controls on prescription drugs, the high cost of research and development, and the complex supply chain between drug manufacturers, pharmacies, and consumers. In 2019, the latest year in which data is available, private insurers and government health programs spent $973 per capita on prescription drugs, while comparable countries spent an average of $466.[iii]

“According to a 2021 study by the RAND Corporation, a non-profit global policy think tank, prices of prescription drugs in the U.S. are 2.4 times higher than the average prices of nine other nations (Austria, Australia, Belgium, Canada, Germany, Japan, Sweden, Switzerland, and the United Kingdom). That higher cost is largely related to brand-name drugs, which are 4.9 times more expensive in the U.S. than in those countries. In fact, brand-name drugs are responsible for 84 percent of total drug costs in the United States despite accounting for only 8 percent of drugs dispensed. the average annual cost of prescription drugs per person is around $1,200. However, this can vary widely depending on the type of medication and the individual’s insurance coverage.[iv]

While the annual average out-of-pocket prescription drug expenditures for adults are $177, people aged 65 and older pay much more for their medications.

8 Steps You Can Take to Lower the Cost of Your Prescriptions

1. Talk to Your Doctor About Less Expensive Options

As your doctor to review your list of medications to confirm you’re only taking what you need and using them properly. Ask the following questions on your next visit:

· Is there a medication alternative?

· Can I get a generic version?

· Is it possible to get a 90-day prescription?

· Can I get samples or coupons from the drug manufacturer?

· Is there an effective over-the-counter alternative?

2. Re-Evaluate Your Health Plan

· Consider a higher-cost plan that provides more comprehensive prescription coverage to lower your annual out-of-pocket prescription costs.

· Contact your health plan or your company’s HR department for help with your evaluation.

3. Search Prescription Discounts

· Before you fill a prescription, enter your zip code and search by drug name on such websites or apps as BuzzRx or GoodRx to determine the cheapest option by pharmacy chain.

· Keep in mind that the cost for the same prescription can vary a lot from pharmacy to pharmacy.

· Based on supply and demand, prescription prices are frequently changing.

4. Use a Prescription Discount Card

· These free cards are a great way to save money—no prescriptions are excluded from possible savings, and they are accepted at over 60,000 pharmacies nationwide.

· Savings vary, but discounts tend to be deepest on generic medications—up to 80% off. Brand-name drugs are usually 10-15% off the retail price.

· Many times, the discounted price using a prescription discount card will be lower than your copay.[i]

· Ask your pharmacist to keep the discount codes on file along with the codes for your health insurance so you never forget to check the price with both cards.

· Contact your health plan administrator if you have a deductible—discounted pricing may not count towards the requirement.

· Anyone can use the cards to save, even if they have insurance.

5. Buy Online

· Medicine is often less expensive online.

· Beware of fake online pharmacies. Go to www.fda.gov/besaferx to check if an online store is legitimate; also look for the NABP VIPPS seal.

· Google your drug’s name plus “discounts” to see if any online coupons, discounts, and rebate offers are available.

· The downside to buying online is that you can’t talk to the pharmacist about side effects, drug-drug interactions, etc.[ii]

6. Get Prescription Assistance

- Use the PhRMA’s Medicine Assistance Tool (MAT), a search engine designed to help patients, caregivers, and healthcare providers learn more about the resources and various programs that make prescriptions more affordable for those in need.[iii]

7. Buy Prescriptions Tax-Free

- If they don’t already offer it, ask your job about a Flexible Spending Account (FSA). This employer-sponsored account allows you to set aside money from your paycheck pre-tax and can be used to pay for your medications along with other health-related expenses.

8. Reduce Your Need for Medications

· Improve your eating habits and exercise routines to help reduce your need for medications.

· Get regular medical checkups and follow the advice of your healthcare professional.

Remember, you don’t always need to pay full price for your prescriptions.

[i] Prescription Drugs. Health Policy Institute. Georgetown University, McCourt School of Public Policy. https://hpi.georgetown.edu/rxdrugs/
[ii] ibid
[iii] How Much Does The United States Spend on Prescription Drugs Compared to Other Countries? Peter G Peterson Foundation. https://bit.ly/3AtgU1S
[iv] Ibid.
[v] Both BuzzRx® and GoodRx® offer FREE, pre-activated, and ready-to-use prescription discount cards and coupons. https://www.buzzrx.com/blog/buzzrx-vs-goodrx-whats-the-difference.
[vi] Ibid.
[vii] Ibid.