What is a Drug Manufacturer Coupon?

Drug manufacturer coupons are incentives offered by pharmaceutical manufacturers to encourage people to use their brand medications. These discount coupons from drug companies help consumers save money and make prescriptions more affordable. Manufacturer coupons for medications are distributed to consumers through doctors’ offices, pharmacy services, or online through the pharmaceutical company’s website.

Origin and Reasons for Existence

The U.S. is only one of two countries in the world where direct-to-consumer (DTC) marketing of prescription drugs is legal. As a result, many people request to be prescribed medications they have seen advertised. Pharmaceutical manufacturers follow up DTC marketing efforts with drug manufacturer coupons. These coupons are a marketing tool to stimulate demand for brand medications.

Types of Drug Manufacturer Coupons

Copay Cards or Copay Assistance Programs

Manufacturer copay cards, copay coupons, or copay assistance programs are funded by a pharmaceutical manufacturer. These pharmaceutical manufacturer coupons are usually offered for brand name drugs that do not have a lower-cost generic available. 

Copay cards make brand name medications more affordable for people who have a commercial health insurance plan. They lower the out-of-pocket cost that remains after insurance pays part of the cost.

You may need to fill out an application form to be eligible for a copay assistance program. The duration of the copay program can vary. Copay card payments may or may not count towards your deductible, depending on your specific plan. 

People who are uninsured or have a government insurance plan such as Medicare or Medicaid cannot use drug manufacturer copay cards.

Free Trial Offers

Pharmaceutical companies offer free trials of their brand name drugs to create awareness about treatment options. These manufacturer coupons for medications allow patients to try a medication for a limited period at no cost.

Eligible patients receive a voucher from their prescribing physician, which they can present to pharmacists along with a valid prescription. The voucher allows them to obtain a 30-day supply of the medication at no cost. 

The free trial offer is usually valid for everyone, including people enrolled in a commercial insurance plan, those participating in federal and state programs like Medicare and Medicaid, and people who are uninsured. However, there may be a limit of one voucher per patient. 

Check out: Everything You Need to Know About Medicare Enrollment

Discount Cards

Drug manufacturer-sponsored discount cards are distributed through the pharmaceutical company’s website. They can be used at a point of sale (pharmacy counter) to reduce the cost of a specific prescription drug. These coupons or discount cards come with various terms and conditions. For example, some manufacturer discount cards are valid only for a single use, a specific period, or a certain number of refills.

Find out more about how to lower your prescription costs.

How to Obtain Drug Manufacturer Coupons

Research Manufacturer Websites Online

The first place to start your search for a drug manufacturer coupon is on the internet. Check which pharmaceutical company makes the prescription drug you are taking and visit their website. If you find a drug manufacturer coupon, you can enroll in the program and access the discount, provided you meet the drug manufacturer's terms and conditions.

Visit Doctor's Offices and Pharmacies

Many pharmaceutical manufacturers make copay coupons and discount cards available in physician offices and pharmacies. Ask your healthcare provider and pharmacists if there are any manufacturer coupons for medications that you have been prescribed.

Utilize Prescription Savings Websites and Apps

Prescription discount cards can help you save up to 80% on the cash price of your prescriptions. They are not linked to a specific pharmaceutical manufacturer. Pharmacy benefit managers negotiate discounted prices for a broad range of brand name and generic drugs. The BuzzRx prescription discount card is available for free to all US residents. You can use the BuzzRx discount card at more than 60,000 participating pharmacies nationwide. 

Eligibility Criteria for Drug Manufacturer Coupons

Limitations for Medicare or Medicaid Enrollees

You typically do not qualify for a drug manufacturer coupon if you are insured under state or federal healthcare programs such as Medicare Part D, Medicaid, Medigap, Department of Defense (DoD) programs, Veterans Affairs (VA), or TriCare. This is because federal anti-kickback statutes limit the use of manufacturer coupons for medications. The reason is manufacturer coupons encourage people to purchase expensive drugs that will be reimbursed by government programs. 

Insurance Coverage Considerations

Private insurance companies have also made major changes in recent years to blunt the impact of pharmaceutical manufacturer coupons. 

For example, some health payers bar you from redeeming coupons for certain drugs. Generally, the discount offered by a drug manufacturer does not count toward your annual out-of-pocket spending requirements. Additionally, some health plans increase your out-of-pocket cost-sharing requirement if you apply for manufacturer assistance.

Before paying for your prescriptions using a drug manufacturer coupon, make sure you understand the terms and conditions of your health insurance policy.

Income-Based Eligibility

Some drug manufacturer assistance programs have financial eligibility criteria. For instance, you may have to prove your annual income is less than 500% of the federal poverty level to qualify for manufacturer-sponsored discounts. 

How to Redeem Drug Manufacturer Coupons

Present Coupons at the Pharmacy Counter

Most drug manufacturer coupons can be presented at the point of sale (pharmacy counter), along with a valid prescription for a brand name drug. Some pharmaceutical manufacturer coupons require activation before use. 

Can’t Wait for Insurance Pre-Authorization? BuzzRx Can Help

Use Coupons Carefully in Conjunction with Insurance

If you are insured, drop off your prescription at the pharmacy counter and wait for it to be processed to find out your copay. Read the fine print regarding the use of a drug manufacturer coupon with health insurance. See above under “Insurance Coverage Considerations.”

Understand the Expiration Dates and Terms

A drug manufacturer coupon may have an expiry date and terms. For example, you may be able to get a prescription drug at participating pharmacies at a discounted price only if you purchase a 90-day supply, subject to a maximum savings of $150, if the coupon is presented before the expiry date.

Benefits of Drug Manufacturer Coupons

Reduced Out-of-Pocket Costs

Participating in a drug manufacturer discount program can help you obtain brand name prescription medications at a reduced out-of-pocket cost, sometimes as low as $0. 

Access to Medication for Uninsured or Underinsured Patients

The difference between the retail price of a drug and the discounted price with a drug manufacturer coupon can be significant. These coupons are especially useful for people with chronic conditions who are uninsured or underinsured. They allow such individuals to take their prescription drugs regularly.

Improved Medication Adherence

By making prescription medicines more affordable, drug manufacturer coupons improve adherence to treatment. This has long-term benefits, especially for people with chronic medical conditions who need to take medications indefinitely.

Potential Limitations and Criticisms of Drug Manufacturer Coupons

Impact on Healthcare Costs and Insurance Premiums

Drug manufacturer coupons are a marketing strategy. They encourage patients to use (or switch to) more expensive brand-name drugs instead of equally effective generic alternatives. Drug coupons are commonly offered for new drugs to stimulate demand or offset high copays for non-formulary drugs that are not covered by insurance. Ultimately, manufacturer coupons increase drug costs, raise healthcare premiums, and shift higher costs back to consumers by undermining insurance and decreasing competition.

Restrictions and Exclusions

• Most manufacturer coupons work in conjunction with your primary insurance. You may not be able to use these discount coupons if you are uninsured.

• Drug manufacturer coupons usually have limitations on the number of prescriptions that can be filled in a specified time period. This means patients with chronic conditions will eventually need to pay the full price of the drug once the coupons expire.  

• Patients with federal or state-run insurance do not qualify for manufacturer coupons for medications.

• Pharmaceutical manufacturer coupons often require you to provide your medical information to the drug manufacturer.

The Role of Generic Alternatives

Manufacturer coupons are designed to increase sales of brand name medicines. Pharmaceutical manufacturers include the cost of these coupons in their pricing strategy and use them to build brand loyalty by reducing sales of generic drugs. Yet, generic alternatives to brand name drugs are more affordable and equally effective and safe.

Tips for Maximizing Savings with Drug Manufacturer Coupons

Combine Coupons with Other Savings Programs

You can combine drug manufacturer coupons with commercial insurance to lower your copay for some time. If you do not have health insurance or prescription drug coverage under your health plan, a prescription discount card such as BuzzRx can help you save on the cash prices of medications.

Keep Track of Coupon Offers and Deadlines

Some manufacturer coupons are only valid for a specific period following the initial fill. Make sure you keep track of deadlines and any new offers on the pharmaceutical manufacturer’s website.

Use Coupons Responsibly for Long-term Savings

Review your motivation to participate in a manufacturer discount program from time to time. You may save more long-term by taking a lower-cost but equally effective generic version of the drug.

Frequently Asked Questions about Drug Manufacturer Coupons

Can Anyone Use Drug Manufacturer Coupons?

Anyone cannot use drug manufacturer coupons. You need a valid prescription for the brand name medicine. Additionally, some manufacturer coupons have eligibility requirements, such as insurance coverage or income level. 

Are There Any Risks in Using These Coupons?

There are a couple of risks in using manufacturer coupons. These discounts encourage you to purchase expensive brand-name drugs even when less-expensive generics are available. Also, your insurer may use a copay accumulator, which means they will not count these payments toward your cost-sharing requirements.

How Do Drug Manufacturer Coupons Differ from Other Discount Offers?

A drug manufacturer coupon is for a specific brand-name prescription drug made by the pharmaceutical company offering the discount. Other discount offers, such as prescription discount cards, offer discounts on a wide range of brand name and generic medications.

Conclusions and Next Steps

Main Points

Millions of Americans rely on manufacturer discount coupons and cards to pay for expensive medications, especially for chronic conditions. However, you should keep in mind that: 

• These discount coupons are designed to encourage the use of pricier brand name drugs even when less expensive generics are available. 

• You may only be able to use the coupons a few times before you have to pay the full price of the drug. 

• Government insurance programs such as Medicare and Medicaid do not allow the use of manufacturer coupons. 

• Insurers may not count them towards your cost-sharing requirement.

Informed Decision-Making

Keep in mind the above-listed factors before you choose to participate in a drug manufacturer’s discount program. Manufacturer coupons for medications can make your prescriptions affordable, but they may not always be the best choice for you. Looking for more options? Check out 7 options for when “I Can’t Afford My Medication Even With Insurance.”

Find More Information and Help

The best place to find more information about pharmaceutical manufacturer coupons is on the drug manufacturer’s website. Be sure to also check your insurer’s terms and conditions about the use of drug manufacturer coupons.