Save on Prescription Drugs

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8 Ways to Save Money on Your Prescription Drugs

Here are 8 practical ways to help you save money on your prescription drug purchases. With a little footwork, chances are you can lower the cost of your drug purchases significantly! This whole article is full of helpful links and references to help you get started. Save money and get the medications you need to live a long, productive and healthy life.

1.  If you’re eligible for Medicare and not already currently enrolled in a plan join a Medicare Prescription Drug Plan (PDP) or a Medicare Advantage Plan with a PDP.


2.  Already in a Medicare Prescription Drug Plan? Make sure you’re in the right plan for your individual needs. The drug plans change the list of drugs they cover each year so it pays to check during the Annual Enrollment Period which runs from November 15th to March 31st.


3.  Use generic alternatives to branded drugs whenever possible.


4.  If you have an insurance plan ask about mail order options. This can save you 30-60% of the co-pay amounts on drugs you take on a regular basis


5.  If you are of limited financial means apply for public assistance (there are lots of programs) or


6.  If you have to take branded drugs, apply for help directly from the pharmaceutical companies themselves. All the major companies offer help to those who need it through Prescription Assistance Programs (PAPs)


7.  Join a prescription discount program or get the free PlanPrescriber Discount Drug Card that will help you save money on drugs not covered by your insurance. Click here to print your free card!


8.  Ask your doctor or pharmacist about therapeutic interchange. This is a fancy term for finding similar branded drugs to those you are taking that have better coverage from your specific insurance plan.

Join a Medicare Prescription Drug Plan (PDP) or a Medicare Advantage Plan with a PDP

Join the millions of seniors who are collectively saving billions of dollars on their prescription drugs each year though this government subsidized program. There are lots of plan choices and if you take the time, you can generally find a plan that offers coverage for the majority of your drugs. You could save hundreds or even thousands each year. As a further incentive to participate, once you turn 65, the government will levy a surcharge of 1% per month for every month you don’t have creditable coverage. That means if you wait until 10 months after your regular sign up date (you have until 3 months after the month of your 65th birthday to sign up), you’ll pay 10% more each month for life for your plan, than if you had signed up on time. So even if you don’t need drugs today, chances are good you will at some point and it pays to sign up when you turn 65. There is help available. Use www.planprescriber.com to find a plan that best fits your needs online, or call the 800 number listed on the site to talk to one of their friendly and knowledgeable representatives about getting signed up.

Get in the Right Insurance Plan

The biggest misconception seniors have about the new Medicare prescription drug plans is that they are all the same. Depending on where you live, there are probably 50 or more plans for you to choose from and many offer radically different coverage benefits. So, one of the best ways for you to save money on your prescription drugs is to ensure you are enrolled in the best Medicare Part D Drug Plan for your individual prescription drug needs. Amongst those who took the time to check their coverage, ninety percent (90%) of the people in a plan are enrolled in the wrong plan for their particular needs and stand to save $1,100/year on average once they switch plans. Take advantage of the annual enrollment period from November 15th to March 31st each year to ensure your plan is offering you the best available coverage for your drugs.

There are several options available to you for prescription drug coverage through Medicare – Part D Prescription Drug Plans (PDPs), Medicare Advantage Plans (MAs) or MediGap Plans, sometimes referred to as Medicare Supplement Plans. Here is a brief description of each to help you choose the best type of plan. Once you choose a plan type, you’ll still need to find a plan that offers adequate coverage for your specific drugs:

Medicare Part D Prescription Drug Plan

Offered by private insurance companies, this is a drug benefit offered through Medicare in addition to your normal Medicare coverage. If you opt to enroll, these plans can save you lots of money, but only if you take the time to find the right plan.

Medicare Advantage Plan

These are health plans offered through HMOs, PPOs or other health organizations that are authorized by Medicare but run by private companies. They cover generally all of your Medicare-related health needs with modest co-payments. Many plans provide prescription drug coverage as an option, in addition to lots of other benefits. If you’re already signed up for Medicare Part B, many of these plans have no additional monthly premium and offer terrific benefits like free transportation to your medical appointments and free health club memberships! Check the summary of benefits of the particular plan you’re considering before signing up, but these plans are definitely worth a close look.

Medigap Policies

These plans, also referred to as Medicare Supplement Plans, sold by private companies help to fill in “gaps” in your original Medicare coverage. While somewhat more expensive than the comparable Medicare Advantage plan, these plans generally offer the most comprehensive health coverage available.

Some of these plans may offer prescription drug coverage but you should check with the plan to be sure. If they don’t offer prescription drug coverage, you can purchase a Medicare Part D plan separately.

For more information on finding a Medicare Part D Prescription Drug Plan, Medicare Advantage or Medicare Supplement Plan that is right for you, use the PlanPrescriber site www.planprescriber.com or call one of their helpful representatives with the 800 number listed to find the plan that best fits your needs.

Generic Alternatives

Generic drugs may be a great way to save money on your prescription drug needs. The FDA’s Office of Generic Drugs explains, “a generic drug is identical… to a brand name drug in dosage form, safety, strength, route of administration, quality, performance characteristics and intended use. Although generic drugs are chemically identical to their branded counterparts, they are typically sold at substantial discounts from the branded price. According to the Congressional Budget Office, generic drugs save consumers an estimated $8 to $10 billion a year at retail pharmacies.”

Concerned about quality? Half of the generic drugs are manufactured by the same companies that make the equivalent branded products, many times making generic versions of their own brand name drugs!

Discuss your prescriptions with your doctor and/or pharmacist and see if generic alternatives can save you money. Medicare Prescription Drug plans offer great coverage for generics. In fact, in 2008 Medicare Part D plans have eliminated coverage for the few branded products that had coverage in the gap or doughnut hole in 2007, but there is great coverage from these drug plans for generics. Finally, generic drugs are constantly coming available so check regularly with your pharmacist to see if you can save money.

Mail Order

If you’re in a plan with prescription coverage and there are drugs you take on a regular basis, you need to find out which Pharmacy Benefits Manager (PBM) they use. This is usually shown on your insurance card. If not, ask your pharmacist who your insurance plan’s PBM is. There are only a handful of these companies. The leaders are companies like Medco, Express Scripts and Caremark and they’re ready to help you save money! Go to their web site or contact them by phone and ask them how you can save money with mail order delivery of your drugs. These are the very same drugs dispensed at your local pharmacies, but at a substantial discount. You typically need to ask your doctor to prescribe a 90 day supply, but then your insurance plan will generally let you order a 90 day supply from the PBM for only 1 or 2 co-pay’s as opposed to 3. This can add up to big savings over the course of the year and you have the convenience of having the medications delivered right to your door!

Public Assistance

If you are of limited financial means, there are literally 1,000’s of Federal and State level assistance plans available to you nationwide. We’ll describe one of them here, but the best thing you can do is to visit the National Council on Aging’s Benefits Checkup site: www.benefitscheckup.org. Take 15 minutes to input your information and they will comb through their extensive database of 1,000’s of programs and tell you which ones you should apply to. They’ll even provide you with a user-friendly report with the relevant program names, addresses and in many cases the application forms necessary to take the next step.

One of the most under utilized public assistance programs is the Low Income Subsidy. If you are a Medicare participant who has limited income and assets, you may be eligible for the Low Income Subsidy (LIS), more commonly know as Extra Help, through Medicare’s Part D Prescription Drug coverage. If you should qualify, this could be of great benefit – up to 85 to 100% of your eligible drug expenses in a Part D Plan could be covered by Extra Help. Costs Savings through Extra Help are realized through:

• Low to no monthly premiums
• Low to no yearly deductible
• Lowered prescription payments
• Drug coverage throughout the Coverage Gap, or the so-called “Doughnut Hole”
• Those covered by LIS may join a Part D plan late and not be subject to penalties
• Income of less than $15,600 if single or $21,000 if married
• Resources of less than $11,990 if single or $23,970 if married (Resources include savings and stocks but not your home or car)

These amounts may increase for 2009. If your income or resources are near these levels you should still consider applying. So stop by www.benefitscheckup.org today to see if you qualify for Extra Help or one of the other public assistance programs in their extensive database.

Prescription Assistance Programs

The big pharmaceutical companies that develop and manufacture your medications want to help make their drugs more affordable to those with limited financial means. These programs can provide help with insurance premiums and co-pays. There are more than 180 of these programs providing access to a wide range of medicines. There are two good resources you should use to identify savings opportunities; www.benefitscheckup.org provided by the National Council on Aging and www.pparx.org which is the Partnership for Prescription Assistance site.

PlanPrescriber Discount Drug Card*

If you find you are spending more on prescription drugs than you expect, especially on drugs your insurance plan does not cover, prescription discount cards may be an easy way for you to save money. These are non-insurance programs that allow you and your family to enroll in their program to save money on your prescriptions. These are typically stand alone programs that contract with pharmacies to help direct customers to the participating pharmacies. Savings are realized through the aggregated power of the group enrolling with the program to purchase their prescriptions.

The PlanPrescriber Prescription Discount Card is available to you FREE of charge. The Card can help you save money on drugs not covered by your insurance plan. The PlanPrescriber Prescription Discount Card is accepted at 9 out of 10 pharmacies nationwide. The Card provides an average savings of 20% off the pharmacy’s regular retail price. Click here to learn more and print your free Card so you can start saving today!

*Operated by CVS Caremark
This is NOT insurance. Discounts are only available at participating pharmacies.

Therapeutic Interchange

Don’t be put off by the fancy name. If you are in an insurance plan with drug coverage, but the drugs you’re taking aren’t covered or have large co-pay amounts, talk to your doctor or pharmacist to see if they can find brand name alternatives (alternative therapies) to the drugs you are taking that are covered by your plan. This can provide significant savings. In 2008, the people from PlanPrescriber will be adding a tool to www.planprescriber.com to help identify savings from Therapeutic Interchange. Always check with your doctor or pharmacist before considering a change in your medications.