Have you ever wanted to know: “How do prescription discount cards work”? There is a lot of confusion and misconception out there about these popular Prescription Discount Cards work and how they are able to be provided for free. Let me assure you – the cards work and they have helped millions save money, but insurance and healthcare is confusing, so we’ll try and walk everyone through the background on the prescription industry and these popular cards.
Before the Prescription Discount Card, anyone who had to pay cash for a prescription was fighting a David versus Goliath battle against the insurance companies and was losing regularly. There is much supporting research out there, including a related post HERE, demonstrating that pharmacies regularly charge a premium price to individual cash payers compared to what they charge the insurance companies. Why does this happen? Simple – group purchasing power. The insurance companies are buying in bulk and representing millions. Pharmacies want their business. How do the pharmacies make up for the slim margins they need to provide to the insurance companies? Simple! Charge more for everyone else, especially the individual consumer who is paying cash.
You may ask, “Why would anyone pay cash for a prescription?”. Well, this is a great question. The first and most obvious group – the uninsured and underinsured that have no or poor prescription coverage. But you might be surprised about some of the other reasons to pay cash. Some people are concerned about their insurance companies learning about mental health or addictive issues they may have and so they don’t want to use their insurance to fill prescriptions that help them combat these health problems. Other times, a patient needs a drug or certain brand of drug not covered by their insurance company’s prescription drug formulary.
Discount Drug Network’s Prescription Discount Card has changed the landscape for cash payers. Discount Drug Network, provider of the Prescription Discount Card, covers millions of people and leverages the power of group purchasing to negotiate these discounts on behalf of our members. The pharmacies agree to let our members get discount pricing (just like they do already for insurance customers) because they want our business! They not only give our members fantastic discounts, but they also pay us a small transaction fee each time we process a prescription through our network. This allows us to continue to operate, grow, and save our members money! For the first time, the individual consumer gets access to pricing typically reserved for the largest insurance companies. Any FDA-approved medications are available within our pricing network, but the savings we have access to are not the same for every drug. We find that our pricing is typically much less expensive than the insurance company pricing for generic drugs. For brand name drugs, the savings are usually less. The good news is, our online drug pricing tool suggests any and all alternative generic drugs for your prescription (when available) and helps you shop for the best price from all the participating pharmacies in your area.
Paying cash for generics with the Prescription Discount Card is also now a pretty good idea to explore for many drugs. Don’t be afraid to ask your pharmacist to compare prices for your prescription with both your insurance card AND the FREE Prescription Discount Card. Depending on your insurance’s negotiated pricing and/or the co-pay they will charge you, you might find that you’ll save more money by paying cash with the Prescription Discount Card. You have nothing to lose. The pharmacist just enters the Rx Group # and Rx BIN # found on the Prescription Discount Card into his computer, like he would for secondary insurance. He’ll save the information in his system right with your insurance information, and then every time you fill a prescription you can make sure to ask him to compare prices.
Hopefully this helped answer the question: “How do prescription discount cards work?”. If you have more questions, please check out our frequently asked questions page, or call us anytime! Our Personal Prescription Price Shoppers are standing by ready to help you!