Discount Card Programs Offer Relief from High Drug Costs for Patients

A nationally representative study has uncovered significant potential savings for patients on commonly prescribed generic medications by utilizing Amazon Prime and GoodRx Gold discount cards compared to out-of-pocket (OOP) payments. The findings, published in the Annals of Internal Medicine, highlight the potential benefits of these discount programs, particularly for vulnerable populations. 

Researchers from the University of Toledo College of Pharmacy and Pharmaceutical Sciences conducted the study by comparing OOP payments reported in the 2020 Medical Expenditure Panel Survey (MEPS) to the counterfactual discount card pricing from Amazon Prime and GoodRx Gold for 20 frequently prescribed generic medications. This study was published in Annals of Internal Medicine.  

The study aimed to determine the proportion and extent of OOP payments that exceeded the pricing benchmarks offered by Amazon Prime and GoodRx Gold, referred to as “excess OOP payments.” The results revealed that OOP payments exceeded the prices offered by Amazon and GoodRx for approximately 20% and 43% of the prescriptions studied, respectively. 

A noteworthy observation was the significantly higher proportion of excess OOP payments for patients in vulnerable subgroups, such as the uninsured and those in the no coverage (deductible) phase. For prescriptions assumed to be in the no coverage phase, the proportion of excess OOP payments was 40%, increasing to 79% for those in the deductible phase. 

The study also estimated the cumulative OOP cost-savings that could be achieved if patients obtained their medications using Amazon Prime and GoodRx discount cards. The potential savings were calculated to be approximately $969 million for Amazon Prime and $1.83 billion for GoodRx Gold. These figures underscore the substantial financial relief that patients could experience by leveraging these discount programs. 

However, the authors of the study offer a word of caution. While discount card programs like Amazon Prime and GoodRx Gold can provide immediate out-of-pocket cost relief for specific generic medications, they highlight the dependence of these programs on pharmacy benefit managers (PBMs) for claims adjudication and access to pharmacy networks. This reliance on intermediaries may pose long-term challenges and hinder sustainable solutions to the problem of high drug costs. 

To address the issue of excessive OOP costs effectively, the authors advocate for policy reforms that support the adoption of value-based insurance designs. These reforms would offer a lasting and comprehensive strategy to mitigate the financial burden on patients. By aligning insurance structures with the actual value of medications, value-based insurance designs aim to create a fairer and more cost-effective system. 

In conclusion, the study sheds light on the potential for substantial cost-savings for patients when utilizing discount card programs like Amazon Prime and GoodRx Gold for commonly prescribed generic medications. These savings are especially significant for vulnerable populations and those in deductible phases of their insurance coverage. However, the study also underscores the need for broader policy reforms to address high OOP costs and promote sustainable solutions in the healthcare system.