What Are the Two Types of Prescription Drug Cards?

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More than 66 percent of all adults in the United States use prescription drugs. And with or without health insurance, prescription drugs can be high-priced. Adults spend nearly $73 billion on prescription drugs. It equates to 16 percent of total health costs.

Any help you can receive in prescription drug discounts is welcome. Two forms of non-insurance prescription cards are available to help consumers with drug costs. One is a discount prescription card, and the other is a manufacturer copay card. But what are the differences in these cards, and can they really help you save?

Prescription Discount Cards

Also known as Rx Savings cards, prescription discount cards are popular for the insured and uninsured. Most prescription cards don’t cost anything and are easily acquired. Simply download them from the internet or via a mobile app.

Some prescription drug cards are:

• GoodRx
• Optum Perks
• SingleCare
• ScriptSave WellRx
• Blink Health

When you have a prescription prescribed, you input the name of the drug and the dosage into whatever Rx discount app you have. It will compare prices from different pharmacies to find the least expensive one. You can go online and type the drug in and receive the comparison, or you can have a physical card and go into the pharmacy to find the discount.

Savings With Rx Discount Card

Although it depends on many factors, the various prescription discount card issuers offer different discounts. It also depends on what the drug is. But in the best conditions, you might save as much as 85 percent off the retail price. But the average savings is 15 to 20 percent.

Because generic drugs are already discounted, they often save you the most when using a discount Rx card.

Can You Use a Discount Card With Health Insurance?

You cannot use a discount card with your health insurance. They work independently of each other. But with more expensive drugs, you should have your pharmacist compare your health insurance price to the discount card price and go with the less expensive option.

Some health insurance policies have a cap on prescription costs. There’s a maximum spending on prescriptions. This is when the prescription discount card comes in handy.

And in some cases, the discount card may offer a lower price than your copay. But you can’t use a discount card with your copay. This is true for private insurance or Medicare.

Check Ahead When Using Rx Discount Cards

Determine your savings in advance. Discount rates constantly change. Your card may give you a discount on your specific prescription, but the next month the amount may change. Always use the app or go online to check comparisons.

Your favorite pharmacy may not be able to give you the discounted rate. Be prepared to go to another pharmacy if the discount is worth it.

How Drug Cards Make Money

Some cards charge an enrollment fee. It can be anywhere from a few dollars to $100. This is not the norm and cards that charge should be avoided.

Every time a card is used a small fee is added to the final price. Sometimes this is paid by the pharmacy, but the consumer often pays it. But since you’re still getting a significant discount, a few dollars tacked on isn’t noticed.

And, finally, the discount card issuer sells your information that they have collected when you signed up for the card. This leads to a privacy concern.

Discount Rx Card Privacy Concerns

Discount Rx card companies are direct-to-consumer and, therefore, not subject to the Health Insurance Portability and Accountability Act (HIPAA). They can legally share your personal information.

Drug purchases and location information is collected when the card is used. This information is sold to marketers.

So, if you purchase diabetes medication, this information could be sold. You may find yourself receiving ads in the mail for diabetes supplies from various companies.

Not all card issuers sell personally identifiable information. Some sell aggregate information. For example, 40 percent of all cholesterol medication purchasers also purchased dietary supplements.

Not all discount card issuers sell private information, but all issuers sell aggregate information. Remember to read a discount card’s privacy policy and avoid giving out unnecessary information.

How to Choose the Best Rx Discount Card

Most discount cards are free, so avoid paying for one. Don’t provide personal information to obtain a card.

Finally, when choosing a card, check to ensure your preferred pharmacies will accept the card.

Manufacturer Copay Cards

A manufacturer copay card is another way to save on prescriptions. Other names they go by are:

• copay savings programs
• copay coupons
• copay assistance cards

These cards are usually for expensive, brand-name medications that don’t have a generic alternative.

The drug manufacturer provides the copay cards. For example, you’ve probably seen pharmaceutical commercials where at the end, it says that AstraZeneca will help with your prescription costs. This is because AstraZeneca provides manufacturer copay cards.

You can find copay cards on a pharmaceutical manufacturer’s website. Register online or call to enroll. Once you’ve enrolled, you will receive a card to print out that you can take to the pharmacy.

Also, ask your health care provider or pharmacist; they may have one available.

How Manufacturer Copay Cards Work

You must have private health insurance to use a manufacturer copay card.

Manufacturer copay cards work alongside your health insurance. The card reduces your out-of-pocket expense. Your health insurance pays part of the cost, and the manufacturer pays the part you’re responsible for. For example, it will pay your coinsurance for the name-brand drug or your insurance copay.

If your insurance won’t pay for the drug, a manufacturer copay card will pay for the medicine or at least a portion.

Manufacturer copay cards are generally offered to offset out-of-pocket costs for medications that don’t have a generic equivalent.

Are There Manufacturer Copay Card Restrictions?

You can only use a manufacturer copay card with private health insurance. It cannot be used with Medicaid or Medicare.

This is because of anti-kickback statutes. These statutes prohibit a manufacturer from inducing the purchase of an item when the federal government will reimburse the purchaser.

There are other restrictions in different regions. For example, California banned manufacturer copay cards to purchase brand-name pharmaceuticals with generic equivalents.

Discount Rx Cards and Manufacturer Copay Cards

Regardless of if you have health insurance or not, pharmaceuticals are costly. Having a prescription discount card could save you money.

If your doctor prescribes you a name-brand drug with no generic equivalent, your private health insurance may not cover it. That’s when the manufacturer copay card comes in handy.

Both cards are available to help lower your prescription drug bill.

The Epoch Times Copyright © 2023 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.