By McKay Moravick
Navigating the complexities of health plans and prescription coverage can be challenging. An effective way to manage costs and ensure you receive the medications you need is by opting for preferred generic drugs. Here’s why taking preferred generic drugs is beneficial for both your health and your wallet.
Understanding Prescription Coverage
Not all health plans cover the same prescription drugs. Each plan has a formulary, a list of covered drugs. If a drug you need isn’t on the formulary, you may have to pay the full price out-of-pocket. Additionally, the cost-sharing for covered drugs varies depending on the type and tier of the drug.
What Are Preferred Generic Drugs?
Generic drugs contain the same active ingredients and work the same way as their brand-name counterparts. Preferred generic drugs are those listed in your health plan’s formulary that typically come with the lowest copayments. The FDA ensures that generics are as safe and effective as brand-name drugs, but they cost 30% to 70% less.
How to Save on Prescription Drugs
Here are some strategies to save money on prescription drugs without compromising your health:
- Start with Generics: If your medication is available as a generic, it’s often the best first choice. Generics are just as effective as brand-name drugs and significantly cheaper.
- Check Your Plan’s Covered Drug List: If your prescribed drug isn’t on the list, ask your doctor for a similar alternative that is covered. Formularies can change throughout the year, so staying informed is crucial.
- Understand Drug Tiers: There are three categories of covered drugs with different copayments:
- Generic Drugs: Lowest copayment, equivalent to brand-name drugs.
- Preferred Brand-Name Drugs: Higher cost than generics but less than non-preferred brands, often available at a discount.
- Non-Preferred Brand-Name Drugs: Highest copayment and may require additional coinsurance.
- Consider Costco for Prescriptions: Costco offers substantial savings on medications. A Consumer Reports investigation found that Costco’s prices for common drugs were significantly lower than those at other major retailers. Costco also provides a Member Prescription Program with savings up to 80% on popular medications and offers convenient mail-order and auto-refill services, ensuring you never run out of essential prescriptions.
Choosing preferred generic drugs can lead to substantial savings and ensure you have access to the medications you need. Always check your health plan’s formulary and consult with your doctor about generic alternatives. Additionally, exploring cost-saving options like Costco can further reduce your expenses.
At Boettcher Insurance Agency, with over 26 years of experience as an independent agency, we are here to help you navigate your health plan options and maximize your savings. Contact us today to learn more about how we can assist you in managing your prescription drug costs and overall health insurance needs.
