Prescription Drug Costs
A study from the National Institute for Health Care Management (a non-partisan group researching healthcare issues) has revealed that spending on prescription drugs rose 18.8% to $131.9 billion in the year 2000.
- 9000 drugs were studied.
- The 50 best-selling drugs accounted for 44% of the $131.9 billion spent on prescription drugs in 2000 (a 29.7% increase over 1999).
- Half of the 18.8% increase from 1999 to 2000 was attributed to sales of about two dozen of the most popular drugs.
The average price of the best-selling drugs was $67.15 (a 9.4% increase from 1999 to 2000). The average prescription cost for other drugs was $36 (a 7.7% increase). What accounts for the soaring cost?
- An increase in the number of prescriptions written.
- The use of more expensive drugs.
- Price increases.
Retail pharmacies distributed 42% more Celebrex and 71% more Enbrel between 1999 and 2000. Among the reasons cited are:
- forceful marketing and advertising campaigns
- patients requesting specific prescriptions from their doctors
However, the need for affordable and accessible prescription drugs must not be overshadowed by the developments of an exciting and expanding drug industry. Is there anything you can do to help control your own prescription drug costs?
Here are 10 tips to help you save on prescriptions:
#1) Generic vs. Brand-name Drugs
Ask your pharmacist if there is a generic equivalent available for the drug your doctor has prescribed. Generic and brand-name drugs contain the same active ingredients. Generic drugs are considered safe and effective overall, but there can be subtle differences in how they are formulated. Bottom line: it is worth it to try generic drugs since they can be considerably cheaper.
#2) Obtain larger quantity
Some pharmacies give a price break when drugs are ordered in larger quantities. Ask your doctor to write your prescriptions for a 90-day supply rather than a 30-day supply.
#3) Shop around
Not all stores are created equal. Price variation exists between competitors. Call or ask for a price quote before filling a particular prescription. While a particular drug may be cheaper at one store, another drug may be cheaper at a different store. Online pharmacies are an option too.
#4) Choice of medications
The drug industry has given us several new medicines within the last few years, but newer is not always better. For example, Celebrex belongs to the category of NSAIDs known as COX-2 inhibitors. Is it necessarily a better choice than older, traditional NSAIDs? The cost of newer drugs is higher, but if not more effective for you, why pay more?
#5) Strength of the pill
Consider the price of a higher strength pill. If a drug is more commonly prescribed in the 20 mg. strength, but you have been prescribed 10 mg., would it be cheaper to order the 20 mg. strength and break them in half? A price break is usually given to drugs which are more commonly prescribed or more commonly available. Check with your doctor about pill-splitting however. It is not always safe to do so (i.e. enteric coated tablets).
#6) Borderline drugs
Some people are saving with borderline drugs. Have you considered it yourself? Taking a trip across the border to Mexico or Canada can yield significant savings on some drugs.
#7) Drug assistance programs
Many drug companies offer drug assistance programs for people with medical and financial need. Once again, not all programs are created equal. Check with the drug manufacturer to see if such a program exists and if you qualify.
#8) Government programs
Many states offer a drug benefit with Medicaid. Check with the Medicaid office in your state to see if you qualify.
#9) Discounts, free samples, and coupons
Take advantage of everything available to you.
- Mail-order pharmacies sometimes offer group discounts, such as AARP, the American Association Of Retired Persons.
- Your doctor usually has a collection of free samples. Ask if your doctor has free samples available for the drug you are taking.
- Don't forget about coupons. Drugstores sometimes offer coupons to try to win your business.
#10) Know your insurance
Know the details of your health insurance coverage. Know the extent of the benefits, co-payments, and annual caps. Determine which drugs are on the formulary list of your insurance company. A formulary is a list of approved drugs. Typically, formularies are less expensive than drugs not on the list.
Clearly, it is the objective of every patient to obtain the most effective treatment for the best possible price. By considering the ten tips and implementing those which apply to your situation, you will be giving your best effort to controlling your prescription drug cost.
Related Resources
Sources: Drug Spending Grows Nearly 19%, The New York Times; Prescription Drug Prices Driven Up, Associated Press; Find A Way To Pay, Arthritis Today
