Prescription drugs are often integral to managing several medical conditions, from high blood pressure to rheumatoid arthritis. Currently, over 65% of all adults in the U.S. use prescription drugs, many of whom are older adults who use prescription drugs to treat chronic conditions and improve their quality of life. Unfortunately, approximately one in three Americans can’t take their medication as prescribed due to the prohibitive costs.
The cost of prescriptions has increased significantly over the years. In 2021, the drug costs were an average of $1,432 per American. Between January 2022 and January 2023, manufacturers raised the price of more than 4,000 drugs, 46% of which was above the rate of inflation.
These high costs often mean that low-income Americans, adults on a budget, and people with other financial challenges struggle to afford their prescribed medications, lowering their ability to manage their conditions and their quality of life.
Thankfully, there are ways around this. Here are five ways to save on prescription drug costs.
Many adults assume that serious conditions merit brand-name drugs, as generic meds won’t be “good enough.” However, this isn’t true. For the most part, generic medications work just as effectively as brand-name drugs, and about 90% of prescriptions filled are for generic drugs. While the inactive ingredients may vary, generic drugs often contain the same active ingredient, making them a suitable and lower-cost option. Generic drugs cost around 80-85% less than brand-name drugs.
Buying in bulk is a great option for lowering your prescription drug costs. For example, some daily medications come with discounts if you buy them in bulk. While the upfront cost may be higher than buying your regular 30-day dosage, you save money in the long run. Some pharmacies like CVS, Walgreens, and other mail order pharmacies offer discounts on 90-day supplies of certain medications, so you can get them at a fraction of the cost of your 30-day supply.
Insurance plans often have drug formularies — tiered lists of generic and brand medications covered by the plan. Also known as a drug list, a formulary helps patients and doctors know the out-of-pocket cost of drugs in different tiers (Tier 1 is often the cheapest). This makes it easier to understand your current drug costs and the lower-cost generic alternatives available within the same category. If you’re working within a limited income or fixed budget, knowing your drug formulary can save you hundreds per month.
The cost of prescriptions can vary widely based on geography, both globally — as they are often more expensive in the U.S. than in other countries — and regionally. The cost may also vary from one pharmacy to another. Comparing prices across pharmacies allows you to find the medication you need for the best available price, lowering your overall prescription drug costs. Prescription drug discount programs like GoodRx, Community Cares Rx, and WellRx are great resources that allow you to compare the costs of your medications and find the pharmacy that has the lowest prices.`
Medicare Extra Help is a Medicare program that helps make prescription drugs more affordable for people with limited resources. For those who qualify — whether automatically or after applying for the program — Extra Help covers Medicare Part D premiums, copays, deductibles, and other costs and automatically enrolls you in Part D if you aren’t already enrolled. Under Extra Help, you pay $0 on your premium and deductible, and prescriptions at participating pharmacies will be up to $4.90 for generic drugs and $12.50 for brand-name drugs. When costs reach $2,000 — whether paid directly by you or on your behalf — you pay $0 for each covered drug.
While the price of prescription drugs continues to rise, there are still a few ways you can get the medication you need to maintain your quality of life at a fraction of the cost. Instead of rationing your medication and going without to save money, explore your options for lowering your drug costs — from buying generic and comparing pharmacies to buying in bulk and using formularies.
*Disclaimer:
The information provided in this blog post is intended for general informational purposes only and does not constitute medical advice. It is not a substitute for professional medical consultation or treatment. Always consult with a qualified healthcare provider for any questions you may have regarding a medical condition.
SmartMatch does not endorse or recommend any specific products, treatments, or procedures mentioned in this article. Reliance on any information provided in this blog post is solely at your own risk. We encourage you to discuss any health concerns or questions with your doctor before making any decisions about your health or treatment.
Enrollment in a plan may be limited to certain times of the year unless you qualify for a Special Enrollment Period or you are in your Medicare Initial Enrollment Period.
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