There are several factors come into play when considering the potential cost savings of pharmacy discount cards compared to health insurance for generic medications used to treat common conditions.
Are Pharmacy Discount Cards Cheaper Than Health Insurance?
Did you know that pharmacy discount cards might be cheaper than health insurance? A recent study looked at how much people had to pay for generic medications used to treat illnesses like asthma, depression, diabetes, and high blood pressure. They compared the costs for people without insurance, those with health insurance, and those who used pharmacy savings plans like GoodRx Gold and Amazon Prime.
According to the study, 20% of the time, generic drugs cost more out-of-pocket compared to Amazon rates. On average, people had to pay an extra $10 for each prescription. Similarly, out-of-pocket costs were around 43% of the time more expensive than GoodRx rates, with an average extra cost of over $10 per prescription.
So, why are these discount cards cheaper? Well, it turns out that the main reason is that people who paid cash instead of using Amazon or GoodRx had to pay more. When people paid in cash, 50% of the generic medications had higher out-of-pocket prices. And when they used GoodRx, 85% of the prescriptions had higher costs. Now, let’s talk about insurance. People with private health insurance often had to pay more for their copays at the pharmacy compared to Amazon and GoodRx. Insurance copays were higher 26% and 50% of the time, respectively.
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Which is cheaper: Amazon or GoodRx?”
Professor Geoffrey Joyce of the University of Southern California claims that because Amazon and GoodRx purchase generic drugs in bulk, they can offer lower prices. They concentrate on giving their clients high-quality products at reasonable prices. They are open to accepting reduced prescription profit margins in exchange for additional sales or membership fees.
It’s significant to note that the study ignored the costs associated with joining these discount schemes. While GoodRx Gold provides individual subscriptions for $10 and family memberships for $20 per month, Amazon Prime costs $15 per month or $139 annually. Even though the study concentrated on those without insurance, those without insurance or with high-deductible health plans can still benefit from Amazon and GoodRx. Savings amounts can differ based on things like insurance coverage, the pharmacy you use, and the particular prescriptions you require.
It’s vital to keep in mind that insurance is frequently preferable for brand-name prescriptions without generic alternatives, even though using discount programs can be less expensive for common generic medications without insurance coverage.