Summary:
Using Medicare Part D and GoodRX in tandem leads to savings on your prescriptions
GoodRX is a free coupon service that does not replace your insurance
GoodRX is great for many generic prescriptions but not most brand name prescriptions
Dropping Medicare Part D for just GoodRX is a mistake
We have helped thousands of people with their Medicare over the years, and today, we're going to tell you about the secret weapon we use to help our clients save hundreds on their prescriptions.
We use GoodRX with Medicare Prescription Drug Coverage to ensure people pay the lowest possible prescription price for their medication. In this article, we'll talk about what GoodRX is, how it works, how to use it to maximize savings and stick around until the end to discover the common mistake with GoodRX that costs people money.
Let's dive into it.
What is GoodRx?
GoodRx is a coupon service that helps lower the cost of certain prescription drugs at certain pharmacies. As of January 2024, it is not an insurance company. You can keep your current insurance and still use GoodRx.
No sign-up is necessary, and you don't even have to get a card with your name on it. Download the GoodRX app, get a GoodRX card at a pharmacy or doctor's office, or you can sometimes say, "I want the GoodRX price" at the pharmacy.
To see what GoodRX offers for your prescriptions, go to the GoodRX website or GoodRx App and type in your prescription, the dosage and frequency, and your zip code. You will then see what all the pharmacies in your area offer that prescription for.
Pro Tip: it is almost always less expensive to buy as a 3-month supply than a 1-month supply with GoodRX.
If you find a price you like, you can transfer that prescription to the pharmacy with the lowest price and start getting a better price. To transfer your prescription, call your doctor's office and have them transfer it to the new pharmacy.
Another pro-tip: The prices at grocery stores tend to be lower compared to traditional large pharmacies.
How To Pair GoodRX with Medicare
Medicare has certain prescriptions that are low cost, some that are medium cost, and some that are incredibly expensive. There are times that you can use GoodRX instead of your Medicare plan to maximize your savings. You are still enrolled in your Medicare plan, you just choose to use GoodRX for a particular drug. You don’t do them both at the same time, you choose one or the other depending on the situation.
We line up all our clients' prescriptions and compare their Medicare costs to their costs with GoodRX. We go with the lowest price across the board to help determine what is best for the client. It can seem complicated at first, but you can simply put the prices side by side like this:
The most common drugs that are cheaper with GoodRX Are:
Some Gels & Ointments
Some Inhalers
Some Eye Drops
Certain Generic Prescriptions
You often only need a gel tube or inhaler once or twice a year. Taking a plan that focuses on your other prescriptions can be much more cost-effective while you use GoodRX for that one-time fill-up.
Certain generic prescriptions are considered Tier 3 on your Medicare drug plan and can count towards your drug plan's deductible. A Tier 3 designation can lead to high copays with your Medicare prescription plan. You may be better off using GoodRX.
Downsides To GoodRX
I've just told you how to save hundreds of dollars with GoodRX potentially. Now we have to talk about the downsides.
The biggest one is that brand-name prescriptions are costly with GoodRX. If you NEED a brand name prescription, GoodRX is the answer 10% of the time. When we compare prices, the GoodRX price of a brand-name drug is usually VERY close to the total retail price. There are few savings to be had there.
Let's use an example. Eliquis is a common brand-name medication. Eliquis is incredibly expensive, with a retail cost of $586/month.
On Medicare, Eliquis has an "All-In" price of about $1800 annually here in New Jersey. That means between the premiums of your drug plan and your copays at the pharmacy, you will pay $1800 over the year.
If you use GoodRX, that price can be around $550-$650/month. Your "All-In" price is between $6600 and $7800 annually! Medicare is by far the better option.
The Biggest Mistake People Make With GoodRX
We have helped thousands of people with their Medicare prescription drug coverage, and one of the biggest mistakes we see people make is someone coming to us and saying, "I just use GoodRX."
Do not do this!
We outlined earlier that GoodRX is usually great 10-20% of the time. But in most cases, you should be using Medicare.
Many clients see savings with GoodRX with one drug and assume that GoodRX has savings across all of their drugs. Do not fall into this trap! Continue to make side-by-side comparisons of your prescriptions to see the best cost.
An even worse mistake is to drop your Medicare drug coverage for only GoodRX. As outlined earlier, GoodRX needs to cover expensive brand-name medications well. You could be stuck paying thousands of dollars in copays each year.
You can also accrue lifetime penalties with Medicare when you don't have Medicare drug coverage for extended periods. With many standalone drug plans as low as $0-$7 a month, depending on where you live, there's no reason not to have a Medicare drug plan once you're eligible.
Summary
To summarize this article, use GoodRX with Medicare Part D to maximize your savings. Medicare is the best price about 80%-90% of the time, and GoodRX is used to help with the other 10%-20%. Don't use ONLY GoodRX when looking for the best price because it is rare that all your prescriptions are the best under GoodRX. And don't drop your Medicare drug coverage in favor of only GoodRX.
We hope this article helps you understand how we help our clients lower their drug costs. Please send it to a friend who you think could use the advice. Comment below if you have questions or want to suggest another topic we should cover.
If you need help with your Medicare needs, contact us here at NJ Life and Health. We have helped thousands of people nationwide with their Medicare needs and would be happy to help you. We are licensed in 24 different states, so don't let the NJ fool you; chances are we can help.
Visit our website at www.njlifeandhealth.com or call our Toms River, NJ office at 848-226-6897 to talk to one of our licensed brokers.