Prescription medications are essential for many people’s health and well-being, but they can also be expensive and burdensome. According to a 2022 report by the Kaiser Family Foundation, more than half of drugs covered by Medicare have experienced price increases faster than inflation, and hundreds of prescription medications have seen price hikes since the beginning of 2023.

Fortunately, there are some strategies that both employers and employees can use to save money on prescription drugs, without compromising on quality or effectiveness. In this blog, we will share 8 ways that you can reduce your prescription drug costs and get the best value for your money.

1. Choose Generic Drugs Whenever Possible

One of the easiest and most effective ways to save money on prescription drugs is to choose generic versions of brand-name drugs. Generic drugs are approved by the Food and Drug Administration (FDA) to have the same active ingredients, strength, dosage form, and route of administration as their brand-name counterparts. They are also required to meet the same standards of quality, safety, and effectiveness as the original drugs.

Generic drugs can cost anywhere from 30% to 80% less than brand-name drugs, which can translate into significant savings for both employers and employees. For example, the average retail price of a brand-name drug in 2022 was $558, while the average retail price of a generic drug was $40. That means that switching to a generic drug could save you $518 per month, or $6,216 per year.

To find out if there is a generic version of your prescription drug, you can ask your doctor, pharmacist, or insurance provider. You can also use online tools such as GoodRx or NeedyMeds to compare prices and coupons for different drugs and pharmacies.

2. Use Your Insurance Formulary and Preferred Pharmacy

Another way to save money on prescription drugs is to use your insurance formulary and preferred pharmacy. A formulary is a list of drugs that your insurance plan covers, and it may have different tiers or levels of coverage for different drugs. For example, some drugs may have lower copays or coinsurance than others, or some drugs may require prior authorization or step therapy before they are covered.

By using your insurance formulary, you can find out which drugs are covered by your plan and how much they will cost you. You can also work with your doctor to choose the most cost-effective drugs for your condition or switch to a different drug if your current one is not covered or has a high copay. You can request a copy of your insurance formulary from your insurance provider, or access it online through their website or app.

A preferred pharmacy is a pharmacy that has a contract with your insurance plan to offer lower prices or discounts on certain drugs. By filling your prescriptions at a preferred pharmacy, you can save money on your copays or coinsurance, and also avoid any additional fees or charges that may apply at other pharmacies. You can find out which pharmacies are preferred by your insurance plan by contacting your insurance provider or checking their website or app.

3. Ask for Longer Prescriptions for Long-Term Medications

If you have a chronic condition that requires long-term medication, you can save money by asking your doctor for longer prescriptions. For example, instead of getting a 30-day supply of your medication, you can ask for a 90-day supply. This way, you can reduce the number of times you have to visit the pharmacy, pay for copays, or deal with insurance claims. You can also take advantage of bulk discounts or mail-order delivery options that may be available for longer prescriptions.

However, before you ask for a longer prescription, you should make sure that your medication is stable, effective, and safe for long-term use. You should also check with your insurance plan and pharmacy to see if they have any limits or restrictions on the quantity or duration of your prescription. Some insurance plans may require prior authorization or special approval for longer prescriptions, and some pharmacies may not have enough stock or storage space for larger quantities of drugs.

4. Look for Coupons, Rebates, and Discount Programs

Another way to save money on prescription drugs is to look for coupons, rebates, and discount programs that may be offered by drug manufacturers, pharmacies, or third-party organizations. These programs can help you lower the cost of your drugs, especially if they are not covered by your insurance plan or have a high copay. However, you should be careful to read the terms and conditions of these programs and make sure that they do not conflict with your insurance plan or affect your eligibility for other benefits.

Some examples of coupons, rebates, and discount programs are:

• Drug manufacturer savings programs: These are programs that are offered by drug manufacturers to help patients afford their brand-name drugs. They may provide coupons, vouchers, copay cards, or free samples of their drugs. You can find out if your drug has a savings program by visiting the drug manufacturer’s website, or using online tools such as RXAssist or NeedyMeds.
• Pharmacy discount programs: These are programs that are offered by pharmacies to help customers save money on their prescriptions. They may provide discounts, rewards, or loyalty points for certain drugs or purchases. You can find out if your pharmacy has a discount program by asking your pharmacist, or checking their website or app.
• Third-party discount programs: These are programs that are offered by independent organizations or companies to help consumers find the best prices and deals on their prescriptions. They may provide coupons, price comparisons, or referrals to different pharmacies or sources of drugs. You can find out if there is a third-party discount program for your drug by using online tools such as GoodRx, SingleCare, or RxSaver.

5. Enroll in a Flexible Spending Account (FSA) or Health Savings Account (HSA)

If you have a high-deductible health plan (HDHP), you can save money on prescription drugs by enrolling in a flexible spending account (FSA) or a health savings account (HSA). These are special accounts that allow you to set aside pre-tax money for qualified medical expenses, such as prescription drugs, copays, deductibles, and coinsurance. By using these accounts, you can lower your taxable income, and pay for your medical expenses with tax-free money.

An FSA is an account that is offered by your employer, and it allows you to contribute up to $2,750 per year (in 2023) for medical expenses. However, an FSA has a “use it or lose it” rule, which means that you have to spend all the money in your account by the end of the year, or you will forfeit the remaining balance. You can also only change your contribution amount during open enrollment or a qualifying life event.

An HSA is an account that you can open on your own, or through your employer, and it allows you to contribute up to $3,650 per year (in 2023) for individuals, or $7,300 per year for families, for medical expenses. Unlike an FSA, an HSA has no “use it or lose it” rule, which means that you can roll over any unused money to the next year, and even invest it for future growth. You can also change your contribution amount at any time during the year.

To be eligible for an HSA, you have to be enrolled in an HDHP, which is a health plan that has a minimum deductible of $1,400 for individuals, or $2,800 for families, and a maximum out-of-pocket limit of $7,000 for individuals, or $14,000 for families, in 2023. You also cannot be enrolled in Medicare or claimed as a dependent on someone else’s tax return.

6. Apply for Financial Assistance or Patient Assistance Programs

If you have a low income, no insurance, or a high-cost medication, you may qualify for financial assistance or patient assistance programs that can help you pay for your prescription drugs. These are programs that are offered by government agencies, nonprofit organizations, or drug manufacturers, and they may provide free or low-cost drugs, subsidies, grants, or other forms of aid. However, you may have to meet certain eligibility criteria, such as income level, citizenship status, diagnosis, or insurance status, to apply for these programs.

Some examples of financial assistance or patient assistance programs are:

• Medicare Extra Help: This is a program that helps low-income Medicare beneficiaries pay for their prescription drug costs under Medicare Part D. It may cover part or all of your premiums, deductibles, copays, and coinsurance, depending on your income and assets. You can apply for this program through the Social Security Administration or your state Medicaid agency.
• Medicaid: This is a program that provides health coverage for low-income individuals and families, including prescription drug coverage. It may cover all or most of your prescription drug costs, depending on your income, assets, and state of residence. You can apply for this program through your state Medicaid agency or the Health Insurance Marketplace.
• State Pharmaceutical Assistance Programs (SPAPs): These are programs that are offered by some states to help their residents pay for their prescription drug costs. They may provide discounts, subsidies, or copay assistance for certain drugs or groups of people, such as seniors, disabled, or uninsured.

7. Shop Around and Compare Prices

Another way to save money on prescription drugs is to shop around and compare prices at different pharmacies or sources of drugs. You may be surprised to find that the same drug can have different prices depending on where you buy it, and sometimes the difference can be significant. For example, a 2022 study by Consumer Reports found that the price of a generic drug for high blood pressure varied from $11 to $1,351 for a 90-day supply at different pharmacies in the same area.

To find the best price for your prescription drug, you can use online tools such as [GoodRx], [SingleCare], or [RxSaver] to compare prices and coupons for different drugs and pharmacies. You can also call or visit different pharmacies and ask for their prices or use mail-order or online pharmacies that may offer lower prices or free shipping. However, you should always make sure that the pharmacy or source of drugs is reputable, licensed, and accredited, and that the drugs are safe, effective, and authentic.

8. Talk to Your Doctor or Pharmacist

Finally, one of the best ways to save money on prescription drugs is to talk to your doctor or pharmacist. They are your trusted healthcare professionals who can help you find the most appropriate and affordable drugs for your condition. They can also answer any questions or concerns you may have about your drugs, such as their side effects, interactions, or alternatives. They can also help you enroll in any programs or services that may help you pay for your drugs, such as financial assistance, patient assistance, or discount programs.

To get the most out of your conversation with your doctor or pharmacist, you should prepare some questions or topics that you want to discuss, such as:

• What is the name, purpose, and dosage of the drug?
• Is there a generic version or a lower-cost alternative of the drug?
• How can I get the best price for the drug?
• How can I use the drug safely and effectively?
• What are the possible side effects or interactions of the drug?
• How can I manage or prevent the side effects or interactions of the drug?
• How can I monitor the effectiveness of the drug?
• How can I get help or support if I have any problems with the drug?

By talking to your doctor or pharmacist, you can make informed decisions about your prescription drugs, and get the best value for your money.

For More Information

Prescription drugs are an important part of many people’s health care and employee benefits, but they can also be costly and challenging. However, by following these 8 ways, you can save money on prescription drugs, and get the best quality and effectiveness for your health and company. Remember, you are not alone in this journey. Contact Vesta Employee Benefit Specialists today so we can help your company save money and cut costs for your employees. We are here to help your employees achieve their health and wellness goals.