4 Ways You Can Save Money on Your Prescription Costs

It’s no secret that prescription drugs can be very expensive, and costs continue to rise. Since these expenses can be tough on your wallet, we have four tips to help you better plan for your costs and save money.

1. Understand Your Plan’s Formulary & Tier Levels

Do you know if your plan’s formulary covers your current medications? A formulary is your insurance plan’s list of covered prescription drugs. Changes may be made to the formulary periodically, so it’s good to ensure you have the most updated formulary list for your plan.

It’s also important to know which tier level your prescriptions are in. A medication’s tier level is its price category within the formulary. As a medication increases in tier level, it generally costs more. Similarly, the lower the medication’s tier level, the less you will pay when you have it filled.

So, what are some easy ways to prepare for your prescription expenses throughout the year? Make sure your medications are on your plan’s formulary and know which tier they are in. We often hear from clients who are caught off guard by the cost of their prescriptions because they didn’t understand how their formulary coverage and tier levels could impact their prescription costs. Understanding your coverage can help save you lots of money each year! Remember that our team of client advisors is always here as a resource and we can review your plan’s formulary and tier level details with you.

2. Use Your Plan’s Preferred Pharmacies

Increasingly, prescription drug plans are featuring “preferred pharmacies” as a way to lower copay amounts. If your plan provides a list of preferred pharmacies, you can choose to have your prescriptions filled at any of those locations and potentially save money by doing so. For those looking for a simple way to reduce costs, switching to a preferred pharmacy can be a great way to save.

3. Consider Using a Mail Order Pharmacy

Likewise, a mail order pharmacy is a convenient and often more cost-effective option for filling your prescriptions. It’s common for mail order pharmacies to charge lower copays for maintenance medications, which are typically tier 1 and tier 2 medications on your plan’s formulary. Note that not all plans offer lower copays if you purchase them through a mail order pharmacy and most Medicare plans have one preferred mail order pharmacy, so be sure to contact our team to discuss the specifics of your plan.

4. Ask About Paying Cash & Using Coupons

Ask your pharmacist if the cost of your prescription drug is lower when paying with cash as opposed to using insurance. In some cases, it is more cost-effective to pay cash. When you use cash to pay for your prescriptions, you can occasionally apply coupons which may save you more than if you used your plan. GoodRx and SingleCare are great resources we recommend to clients because they have many coupons for most reputable pharmacies. Keep in mind though, that if you don’t use your insurance to pay for your medications, the cost will not count toward your prescription out-of-pocket maximum or deductible.

If you have questions about any of the tips in this post, contact our team of client advisors by calling 1-877-222-1942 or scheduling a call.

Not a RetireMed client? If you’d like trusted, knowledgeable advice about Medicare or individual health insurance coverage, our advisors are ready to help. Call our program advisor team at 1-855-981-8611 or schedule a call.

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