Effective Strategies to Reduce Prescription Drug Costs

Every year, Americans spend approximately $3 trillion on healthcare expenses, with costs expected to rise further. A recent study suggests that retirees, especially seniors, may spend over $250,000 out-of-pocket during retirement on medications not always covered by insurance. Rising prices of specialty drugs and patent protections contribute to these high costs. Managing prescription expenses can be challenging, but several approaches can help lower your spending significantly.

Learn more below.

• Compare Prices at Different Pharmacies Shopping around for medication prices is one of the best ways to secure affordable options. Since prices vary widely among local pharmacies, contact multiple outlets to find the lowest cost for your prescriptions, especially if your insurance does not cover them. Doing so can lead to substantial savings.
• Contribute to FSA or HSA Accounts Contributing to Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) can significantly cut medication expenses—by around one-third. FSAs require use within the plan year or lose the funds, while HSAs allow you to save for future years without time restrictions.
• Utilize Prescription Coupons Look online for coupons before visiting the pharmacy. Authentic manufacturer websites and trusted coupon platforms can provide genuine discounts, helping decrease copays. Sometimes, your healthcare provider or drug companies may also offer trial periods or discounts. Note that some states and insurance programs like Medicare or Medicaid may not accept these coupons, as they can interfere with policies promoting cheaper generic drugs.
• Purchase from Certified Online Pharmacies Online pharmacies often offer lower prices and discounts. Ensure they are accredited by Verified Internet Pharmacy Practice Sites (VIPPS), have licensed pharmacists, and operate within the country. Many also provide free delivery and require a valid prescription, similar to physical stores.
• Seek Free Prescription Fills Certain pharmacies provide free fills for select medications like antibiotics or treatments for chronic conditions. Check with local pharmacies, especially those in grocery stores, to see if your prescriptions qualify for this benefit.
• Proactively Verify Coverage Keep your treatment plans in mind during open enrollment periods. If you are on ongoing medications or anticipate future prescriptions, discuss coverage options with your provider and consider switching plans if necessary.
• Opt for Generic Medications Choosing generic drugs instead of branded, patented options can lead to significant savings. Stay informed about patent expirations and new generic approvals to capitalize on these opportunities whenever possible.