Saving on Prescription Drugs When You Have Drug Coverage

If you have insurance that covers prescription drugs then you don’t have to worry about medication cost, right? Well, maybe or maybe not. Most probably, when you get a prescription from your doctor, you take it to your local pharmacy, and if you have managed care insurance,
you pay a copay—your share of the cost. The pharmacy then deals with the insurance company to get paid the other part of the medication cost. Most individuals have health coverage through managed care plans, and these plans provide prescription drug coverage with copays.
The copays are usually fixed amounts, between $10 and $30, depending on what the plan designates in your contract. Usually the amount is fixed for a year, and that is how much you pay, regardless of the actual cost of the medication. So, if the medication costs $100 and your copay is $10, you pay $10. If your doctor prescribes another medication that costs $200, you still pay only $10. Your insurance pays the difference to the pharmacy. Many managed care plans are now developing different copays for members based on the plan’s cost for the medication. So, for example, a member might be charged a copay of $10 for the generic version of a drug but will have to pay a copay of $30 for the brand name.
There is a catch to the copay system, however. For you to pay only the copay, your doctor must prescribe a medication that appears on what is called a formulary, which is the list of medications that the insurance company has decided it will pay for. If your doctor decides that the medication that is the most appropriate for you is not on the formulary, he or she has to call the insurance company to justify its use. If the insurance company is not satisfied with the explanation, you will have to pay the full price of the medication.
If you have indemnity insurance that covers prescriptions, you pay for the medication and then submit a claim form to the insurance company to get reimbursed for all or part of the medication cost.
In all of the above cases, the out-of-pocket costs are usually small and most people who need medications for an acute condition can easily manage the cost. It starts to be a bit more complicated and expensive, however, when an individual has several chronic conditions and/or is on several medications. Even when you obtain your medications with copays alone, if you have several chronic conditions such as high blood pressure, high cholesterol, and diabetes, and are on several maintenance drugs, these copays can add up pretty fast.
The first step in managing the cost of prescriptions is to determine if the disease is an acute condition or a chronic condition. Acute conditions are illnesses that usually come on suddenly and whose treatments require relatively short periods of time, from a one-time therapy to a month or two of medications. Examples of acute conditions are pain after you see a dentist, an infection such as a strep throat or an ear infection, or a cold. Managing these conditions is not as expensive because once the treatment regiment is completed, the disease is usually cured.
Chronic conditions, on the other hand, usually develop gradually and when diagnosed, have to be treated for longer periods. Chronic conditions like diabetes and high blood pressure have to be treated for longer periods of time, even for life. It is important to realize that with these conditions, you have to continue treating the disease even when you do not feel any symptoms. Many of these diseases have to be “managed” because we do not yet have cures for them. When patients fail to follow treatment directions like taking their medicine every day, the disease can become more complicated and more difficult to manage. The result is an even greater expenditure on healthcare.
There are two strategies for managing the cost of prescriptions when you have coverage: mail order and samples.