How to Save Money on Your Prescription Drugs

If it seems you're paying more this year for your prescription drugs than last year, it's not your imagination. Prescription drug prices are one of the primary causes of the ever-rising health care costs in America. But there are some tactics you can use to help keep your own costs down. Two key tools are the use of generic drugs, and the use of mail order pharmacy.

The use of generic drugs is one tactic available to nearly everyone. Although not every drug is available in a generic version, it's worth checking to see if yours is, since generic drugs generally cost from 30 to 75 percent less than their brand-name counterpart. Worried about the quality of generics? You don't have to be concerned. Generic drugs undergo a rigorous approval process by the FDA to insure that the generic version is identical, or bioequivalent, to the brand-name drug in dosage, safety, strength, performance, quality and use. In fact, many generic drugs are made by the same manufacturer who makes the original brand-name drug.

Most health insurance plans encourage the use of generics by requiring higher co-pays for brand-name drugs. Each time you fill a brand-name prescription, ask your pharmacist if a generic form is available. Have the same discussion with your physician. You may be able to ask for a generic substitution at the drug store counter; in other cases, your physician's express permission is required.

You can also do a little research on your own using the FDA's Electronic Orange Book at http://www.fda.gov/cder/ob/default.htm. This search engine allows you to search by your prescription drug's brand name, then search again by using the active ingredient name. Because there is a lag time between approval and appearance in the Orange Book, you can also search the most recent generic approvals at http://www.fda.gov/cder/ogd/approvals/default.htm.

There is a second tactic that might work to save you money on your prescriptions: mail order pharmacy. More and more employers are including this benefit in their health coverage.

It works like this: When you fill a prescription at a traditional pharmacy, you are usually limited to a 30-day supply, with a co-pay. The mail order pharmacy, on the other hand, generally offers a 90-day supply of the same prescription ... with a single co-pay. If, for example, your co-pay is $20, you could save $40 every 90 days.

Obviously, this formula is of most benefit if you have an ongoing prescription need - to manage a chronic condition like arthritis or high cholesterol, for example. On the other hand, filling a one-time prescription -- for an antibiotic, for instance -- will not provide the co-pay advantage.

If you have ongoing prescription needs, check your current benefit plan to see if a mail order pharmacy service is available. And every time you fill a prescription, ask about a generic substitute. With these two tools in hand, you can make a real difference in your prescription drugs costs this year.