Generics and Discounts: Best Practices for Saving Money on Rx Costs

Prices of prescription drugs in America are steadily rising. SingleCare reporting indicates that in the first half of 2021 alone, more than 1,200 medications surged in price. And looking forward, there’s little reason to believe that the phenomenon will end any time soon.

With most Americans spending no less than $100 monthly on prescription drugs, many people feel that the system is broken. Research from NPR suggests that a lack of competition, as well as other factors like limited supply chain transparency, has put individuals and families in difficult financial positions when it comes to getting the medications they need. Should they take their medications as prescribed or turn their backs on necessary but expensive medicines? It’s a difficult choice — especially for the underinsured and uninsured.

It’s easy to see how Americans might feel like they have few options given this current climate. Is it better to just spend hundreds out of pocket for necessary prescriptions? Would it be OK to just not pick up pricey prescriptions at all, as 51% of people earning less than $35,000 annually do?

On top of the budgeting stress that comes with these pressing questions, the people with the power to change the system aren't doing much to help. The prescription drug industry in the United States remains unregulated from a cost control perspective. As such, pharmaceutical companies set the rates they want for non-generic medications. Most say this is necessary to ensure advancements, but some experts disagree by citing the success and innovations seen in countries with state-controlled drug agencies.

How to Save Money on Prescriptions

So is there an answer or a better way forward? While navigating the rising cost of prescription medications can be overwhelming, you should know that you have more choices than you think. Here are some ways to reduce the cost of the medications you need without putting your health or your finances at risk:

1. Learn the value of generic prescription drugs vs. brand name versions.

When your doctor prescribes a brand-name medicine, always ask whether there is a lower-priced generic version. Generic prescriptions are made with the same ingredients as their branded counterparts. You’ll get the same results but at a better price point.

2. Make use of discount cards and saving coupons.

Tools like Health KarmaRX can help you find the lowest possible prices on your prescription medications. Health KarmaRX customers can collect saving coupons and find the best prices for their medications at more than 65,000 pharmacies nationwide. The average consumer saves around 60% per prescription with Health KarmaRX, which can sometimes even be less than insurance co-pays.

3. Review your insurance drug coverage yearly.

Last year, 13% of people found that their healthcare insurer had stopped covering a medication they needed. The next time your insurance open enrollment period rolls around, it's a good practice to do your due diligence and ensure all of your medications are still covered. Make a list of your medications, call the insurance provider’s customer service department, and find out about any cost increases or coverage changes. The more you know, the less you’ll be surprised the next time you head to your regular pharmacy.

4. Appeal denials from your insurance provider.

Insurance companies will sometimes deny a prescription. This means you will have to pay for it yourself without any financial help. Instead of taking a denial at face value, appeal it. It never hurts to ask. An overturned appeal could result in you being able to reduce the cost of prescription drugs.

Customers can also ask their doctors to provide documentation for why a medication or treatment is needed. That way, should an appeal be necessary, the patient has validation from a primary physician.

Eventually, America might find a more comprehensive way of combatting the rising cost of prescription medications. Until then, rest assured that you have a few means at your disposal to find the best prescription prices. Don't be afraid to use them.

At HealthKarma, we believe good healthcare starts with understanding it. To see how we can help you lower your prescription costs, click here.