Health Advocates Question Value of Prescription Drug Discount Cards
While many consumers looking to reduce their prescription drug costs have turned to discount cards, some health advocates caution that the value of these programs is limited, the Springfield Union-News reports. Discount cards are available through pharmacy benefit managers, senior advocacy groups and Internet companies, and typically require an annual fee in return for savings on some types of prescription drugs. While some cards boast savings of up to 50% on retail prices, many are targeted at cheaper generic drugs and not the brand-name medications most responsible for high prescription drug expenses. Boston University health economist Alan Sager said, "These cards may allow some individuals to reap small to moderate benefits over what they would pay out-of-pocket. The actual benefits may be very small." Those who are critical of discount programs also say they "cut into the profit margins" of pharmacies and generic drug makers. Former Rep. Joseph Kennedy (D-Mass.) -- hoping to address some of these concerns -- launched his own discount program last month that features "exclusive contracts" with GlaxoSmithKline and Bristol-Myers Squibb to provide "direct" discounts to members. "We've got all the pharmacies giving us a point-of-sale discount and we also have the manufacturers' discount. No other card in the country has that that I'm aware of," he said (Lauerman, Springfield Union-News, 10/12).
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