Cost Plus Drug Company

No Middleman. No Price Games. Huge Drug Savings

Sound too good to be true? I thought that as well, until I researched it and found Cost Plus Drugs to offer some significant cost savings.

I hear constantly the concerns of people struggling with paying for their own medications or caring for an elderly loved one and affording their medication costs. There must be an alternative option to affording your prescription drugs.

There is…let’s first make sure we are clear on the issues.

Why Are Prescription Drugs So Expensive?

Pricing of drugs is not regulated.

- The Food and Drug Administration (FDA) is a regulatory agency within the Department of Health and Human Services. The FDA regulates the safety and effectiveness of drugs sold in the United States, but not the pricing.
- This results in middlemen and markups as consumers are at the mercy of Big Pharma and the constant price fluctuations and mark ups.

Drug Exclusivity

A new drug is placed under a patent and drug exclusivity protection.
This includes patents that last 20 years from when the application is filed.
During this time other drug companies can’t develop generic drugs with similar effects giving the holder of the patent the ability to monopolize the market.

Price Hikes and Coverage

Insurance companies – premiums go up and what is covered is less leaving you to pay a higher cost for drugs.
The Middle-Man – Pharmacy Benefit Managers (PBM) manage price negotiations with pharmacies resulting in the price hikes and fluctuations.
Insurance companies, drug companies and employers come up with a list of approved drugs that will be covered under your plan that can work for you or against you.

High Administrative Costs

- The main drives of higher costs are the prices of labor and goods including pharmaceuticals and devices and administrative costs.

Generic Prescription Drug Options

Generic drug options can be more affordable, usually 85% less on average than the name brand. The good news is they offer the same benefits.

You might raise an eyebrow wondering because they are so much less, are they effective?

Recall we talked about drug exclusivity and the patent that can last up to 20 years, but when that expires this opens the market to other pharmaceutical companies to develop their own version of the drug which allows for more competitive pricing.

You may also be concerned that the medication looks different. Due to different pharmaceutical manufacturers making the drugs, the pills and packaging may look different, but the drug will have the same effects.

So, when you visit your doctor’s office and you’re discussing your prescriptions with your provider, ask if there are any generic options.

Prescription Savings Tools

GoodRx, and SingleCare are a few of the prescription saving tools that are out there.

These tools are great. They offer the ability to price shop prescription medication by location to get the lowest price. In some cases, they also offer club savings programs and or manufacturer coupons to lower your cost on prescription drugs.

It does require some working within the tool and the pharmacists when entering the bar code or number from the manufacturer as every system is different, as are the requirements of the code you are using. I have found most pharmacists willing to work with you to enter the code on the card and I have been able to get an inhaler retailing at $475 for $5 with a manufacturer’s coupon, so perseverance pays off.

While these tools can benefit, the issue is the middleman is still in play.

According to the mission statement, the Mark Cuban Cost Plus Drug Company was started based on the belief that every American should have access to safe, and affordable medicines.

I really appreciate that Mark Cuban a billionaire had the compassion to start a program simply because he believes no American should suffer or worse…because they can’t afford basic prescriptions medications.

What Makes Cost Plus Drug Different?

Dramatically reduces the costs of drugs.

- Cost Plus Drug prices are the true cost. They cut out the pharmacy middlemen and negotiate directly with manufacturers to get the best possible price.

Introduce transparency to the pricing of drugs so you know they are getting a fair price.

- When you view the website, it outlines specifically how you are being charged with no hidden agenda.

Who Benefits?

Anyone looking to purchase their medications at a discount

You don’t have insurance that in some cases reduces your cost.
You have insurance with a high deductible plan.
- As a reminder this plan does not pay for anything until that deductible is met. This could be $5K – $10K before you get any financial relief leaving you to pay the high price of prescription drugs until your insurance kicks in.
You have insurance with a low deductible.
- Cost Plus Drugs prices are so discounted that in some cases you may pay less than your copay.

The 15% How You Benefit

I researched a drug to see how it worked.

In this example, we are using Brimonidine Tartrate which is used for individuals with Ocular Hypertension or Glaucoma.
- The total cost of the medication is $10.92 versus a retail average price of $72.50. This provides a $61.58 savings.
- Buying direct results in a cost of $6.88. A mark up of 15% is $1.04 to support the small but mighty team negotiating the rates and working to get more medications added.
- There is also a $3.00 charge for pharmacy labor to prepare your medication.
- $6.88 + $1.04 +$3.00 = $10.92 is full transparent of the cost of the medication.
- To mail to you there is a $5 charge making the full total to get in your hands $15.92.

How It Works?

Find your medication in the online store. You can type in the drug you are looking for or you can search by condition such as high blood pressure or glaucoma.
1. As of this writing there are approximately 300 medications, and they are working to add more every day.
Once you find your medication, sign up and create your account.
1. Signing up also allows for you to get the newsletter which also highlights the new medications they are offering and any reduction in pricing.
Reach out to your provider with instructions and a link from the website you can provide.
Once Cost Plus Drug receives a prescription, you’ll be notified that you are ready to check out.
Your medications will be delivered straight to your door in just a few days.

There is also a downloadable form you can complete and give to your doctor. It also has all the information your doctor will need to fill your prescription. A copy will be available in the resources section.

I hope you have found this blog helpful. For an online explainer video on Cost Plus Drug Company (less than 10 minutes) check out Savvy Health Care Consumer Academy.

We also have a library of explainer videos you can access just in time and when you need it or join the Academy to have all access to information that demystifies healthcare and put you in the driver seat.

Resources:

What Makes Prescriptions Cost So Much?

Cost Plus Drug Company

FAQ’s – Cost Plus Drug Company

Cost Plus Drugs – Contact Your Doctor