When first hearing about prescription drug discount cards, many are skeptical. It just seems to good to be true. How can a card get you upwards of 50% off at a pharmacy?
 

In this Work.com guide, we'll discuss exactly how these cards work, and what type of programs to avoid.
 

First off, it's vital to understand these cards are not insurance. Some discount drug cards have made confusing claims in the past. In addition, some companies charge their members for these cards. The discounts offered by each program can vary greatly.
 

Discount drug card companies negotiate discounts based on the sheer size of their cardholder base. Because of this volume, drug companies will grant large discounts. (Typically, a generic drugs receive larger discounts than their brand name counterparts.)

Each time a card is used to fulfill a prescription at a pharmacy, the pharmacy pays a fee to the discount drug card company. (this is how the card companies cover their costs) These savings are passed on to the card holder. (see image below)
 


 

In this scenario, everyone wins. The customer receives a discount, and the drug companies and pharmacies create long-term customer who would not have been able to afford the drugs otherwise.