How Do Prescription Discount Cards Work?

Prescription drug spending in the U.S. is about double that of peer nations, averaging over $1,400 per American every year. One in three adults in the U.S. says they are unable to take their prescription drugs due to cost.

Many people are forced to take alternative medications or skip doses to save money. For people who don’t have health insurance, these programs can be life-saving. Please continue reading to find out how prescription discount cards work.

How Do Prescription Discount Cards Work? An Honest Look

Prescription discount cards help to lower drug costs for people paying for their medications in cash and out of pocket. These discount cards are free and can be obtained with or without health insurance.

Since they were introduced in the US in the early 2000s, prescription discount card usage has increased significantly. It is estimated that 5.4% of prescriptions are purchased using Rx discount cards (2021 data).

Struggling to afford your medication, even with insurance? Check out our blog to learn more.

Understanding How Prescription Discount Cards Work

Prescription savings programs typically negotiate prices of prescription drugs with big box chains and independent pharmacies through the help of companies called pharmacy benefit managers (PBMs).

The programs then pass on these discounts to consumers through discount cards and discount coupons, which help to drive business to the pharmacies. As compensation for the increase in sales, the discount card issuers receive a small transaction fee every time a discount coupon is used.

As a result, people purchasing medications save money on out-of-pocket costs of prescriptions, pharmacies benefit from increased traffic and sales, and the prescription discount program also makes a small profit.

Learn about “7 Programs to Help Pay for Medications.”

How Do Pharmacy Discount Cards Work with Pharmacies

Prescription discount cards help to build a loyal customer base for pharmacies.
Pharmacies earn a profit, albeit a smaller one, even at the discounted prices.
Pharmacists are able to sell drugs that would otherwise remain unsold because they are unaffordable.
Discount cards drive non-pharmaceutical sales through additional purchases made when people are picking up their prescriptions.
Some pharmacies offer prescription discount cards under peer pressure so competitors don’t have an advantage.

The Role of Pharmacy Benefit Managers (PBMs)

PBMs are companies that create the prescription discount program and negotiate discounted prices with participating pharmacies. PBMs play a key role in the actual savings obtained from prescription discount cards, which can vary among different cards and pharmacy chains.

Negotiating Lower Prescription Prices

PBMs make prescriptions more affordable by negotiating discounts from drug manufacturers, wholesalers, and pharmacies in exchange for a spot on a health insurance plan’s formulary or increased sales through an Rx discount program.

What Are Some of the Best Prescription Discount Programs and Who Can Use Them?

The Target Audience for Discount Cards

People who are uninsured or underinsured.
Those with chronic health conditions that require long-term treatment with medications.
People who need ongoing medications, such as birth control.
Those who have an insurance plan without prescription drug coverage.
People who have an insurance plan with high deductibles or high copayments.

Types of Prescription Discount Cards Available

Some of the best prescription discount cards in the U.S. are BuzzRx, GoodRx, SingleCare, Optum Perks, Blink Health, and ScriptSave WellRx.

Eligibility Criteria for Using Discount Cards

There are no special conditions to qualify for a BuzzRx drug discount card. The card is:

Pre-approved
Everyone qualifies
Unlimited use
No expiry date

Should I Use Insurance or a Discount Card?

Insurance vs Discount Cards: Weighing the Benefits

Prescription discount cards are most helpful for people who have little or no prescription coverage. They can help make prescription medicines affordable and increase long-term adherence to prescribed treatments.

Scenarios Where Discount Cards Trump Insurance

Health plan does not have prescription coverage.
The health plan has high deductibles or copays.
The prescribed drug is not in the plan’s formulary.
Insurance covers the generic medication only and not the brand name.
The discounted drug price is less than the copay.

When Is Insurance the Better Option?

The health insurance plan covers the prescribed drug with little to no out-of-pocket cost.
You want money spent on prescriptions to count towards your deductibles or out-of-pocket maximums.
You don’t want to deal with fluctuating prices or discounts.

Understanding the Cost to Patients

The promised savings on prescription medications can be misleading and actual discounts may be lower.
The advertised discounted prices are usually in comparison to inflated prices at chain pharmacies. The price of a drug may be lower at independent pharmacies even without using the drug discount program.

Assessing the Potential Savings

It’s important to compare prices across programs and pharmacies, either online or through mobile apps, to find the most cost-effective option.

Hidden Fees and How to Avoid Them

Most prescription discount cards are free, but some incur a monthly charge which may not be worth it for all patients. Read the terms and conditions carefully before you sign up.

How Do You Use a Prescription Discount Card Effectively?

Steps to Use a Pharmacy Discount Card

Request a BuzzRx discount card on the website and receive it by text, e-mail, or mail to print.
Use the mobile app to find the lowest prices of your medications at a nearby pharmacy.
Present your discount card to the pharmacist at the counter when making a payment at participating pharmacies to receive discounts up to 80%.

Best Practices for Maximizing Savings

Use a free discount drug card rather than a paid one.
Compare costs across different pharmacies.
Try the extras or perks offered by the drug program.

Using Discount Cards with Generic Medications

Discount cards usually provide bigger savings on generic medications compared to brand name drugs.

Analyzing the Best Prescription Discount Cards of 2024

Key Features to Look For in a Prescription Discount Card

Credibility: Choose a prescription discount card from a reputable company. Refer to the Better Business Bureau or the National Association of the Boards of Pharmacy to check a company’s standing.
Cost of membership: Some Rx discount programs give the biggest discounts only to people who opt for a premium paid membership.
Coverage: Check if the brand name and generic medications your family takes are covered.
Savings: Discounts range from 65% to 90%, but individual savings can vary. Check the actual discounts on the medications you take.
Acceptance: Discount programs are accepted at anywhere from 35,000 to 65,000 pharmacies. Check if the pharmacies you use are in the program’s network.
Home delivery: Some people like the convenience of an online pharmacy and home delivery offered by certain prescription discount programs.
Additional benefits: Check for any extra benefits for Medicare beneficiaries, physician services, options for expanded coverage, and other supplemental services.
Partnerships: Some discount programs partner with nonprofits and allow you to support a good cause while saving on your prescriptions.

Comparison of Top Prescription Discount Cards

One prescription discount card may work better for you and your family than others based on the medications you take. Be sure to compare prices before signing up.

Spotlight on BuzzRx Benefits

Free discount card
Pre-approved, everyone qualifies
Accepted at over 60,000 pharmacies, including Walmart, Kroger, Walgreens, Rite-Aid, and CVS Pharmacy
Unlimited-use
No expiry date
Savings of up to 80% on retail prices of prescription drugs
Donations to nonprofit partners

How Do Prescription Drug Discount Cards Work with Your Current Medications?

Applicability to Various Medication Types

Prescription discount cards are applicable to prescribed medications, both generic medications and brand names. However, they are not generally applicable to over-the-counter (nonprescription) medications.

Restrictions and Limitations for Certain Drugs

A prescription discount card only covers certain medications. Your prescription may not be covered by any of the currently available Rx discount programs.

Interaction with Your Current Medication Regimen

Discounts on prescription medicines can fluctuate, causing interruptions in your current medication regimen due to affordability.

Utilizing Technology for Prescription Savings

The Role of Mobile Apps in Accessing Discounts

Many discount programs have mobile apps that make it easy to compare prices and discounts at nearby pharmacies.

The Advantage of Home Delivery Services

Some prescription discount cards offer home delivery from a mail order pharmacy for added convenience and savings.

How Technology Improves the Accessibility and Usability of Discount Cards

Technology puts prescription discounts at your fingertips, so you know where to get the best discounts on your prescriptions without ever leaving home.

Understanding and Protecting Your Privacy

Why Your Personal Information Matters

Information you share with prescription discount programs includes sensitive medical information about your diagnosis and treatment and can potentially be shared with third parties.

How Prescription Discount Cards Handle User Data

Choose a prescription discount card that provides full disclosure on how your personal information is used. BuzzRx has an internal data security team dedicated to securing your information and maintaining your privacy.

Ensuring Your Data Privacy with Prescription Card Companies

Choose a reputable prescription discount card that proactively works to lower data privacy risks.

Concluding Thoughts on Prescription Discount Cards

Summarizing the Potential of Prescription Discount Cards

Prescription discount cards are free and can help you access your prescriptions at affordable prices. Being able to afford your medications at a discounted price by using a free coupon is a win-win situation. Getting a discount card makes sense, especially if you don’t have a health insurance plan and are struggling to pay for your treatment.

However, it’s worth remembering that your actual discount may vary, and not every medication will be 80% off the list price. Also, all your medications may not be covered, and the card may not be accepted at all pharmacies.

The final pricing and out-of-pocket cost of a medication with a discount card will depend on how well the pharmacy benefit managers associated with the discount program have negotiated for the best prices.