Drug Coupon
Encyclopedia
A drug coupon is a coupon
intended to help consumers save money on pharmaceutical drugs. They are offered by drug companies or distributed to consumers via doctors and pharmacists, and most can be obtained online. There are drug coupons for drugs from many categories such as cholesterol
, acne
, migraine
, allergies, etc.
Pharmaceutical companies use drug coupons as a marketing tool to stimulate demand for their products.
Drug coupons are commonly offered for new products to stimulate demand or ameliorate high co-pays for non-formulary (non-preferred products) as a way to level the playing field and remove the disincentive for using a drug that is not covered by insurance.
Besides getting drug coupons from doctors and from the Internet, some drug manufacturers fulfill the consumer requests for coupons by telephone. Regarding telephone offers, manufacturers can mail the coupon to the patient or tell them the coupon codes over the phone.
Generic drug companies rarely offer coupons, though insurance companies occasionally offer discounts on generic drugs.
was designed by the U.S. government in 1965 to help senior citizens and the disadvantaged afford health care. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) put Medicare Part D
into effect on January 1, 2006, expanding Medicare benefits to include subsidized prescription products for Medicare beneficiaries in the United States.
Drug coupons may not be used for prescription products paid for in full or in part by any government sponsored insurance such as Medicare Part D, Medicaid, MediCal Tricare, etc. However if the patient is in the so-called Medicare Part D donut hole and is paying cash for his medicine, he may use coupons.
. So-called lifestyle medications (such as baldness treatments, erectile dysfunction treatments or cosmetic oriented products such as wrinkle fillers) that are typically not covered by insurance are likely to have coupons.
So called specialty pharmaceuticals (such as TNF Inhibitors) also use coupons as a marketing tactic.
Coupons (usually in the form of co-pay assistance programs) for specialty pharmaceutical products, particularly injectable drugs such as TNF inhibitor
s can be worth several thousands of dollars per year.
This dual layer of professional scrutiny ensures that the drug product has been properly stored, is not expired, is dosed correctly in an age-appropriate fashion, and that the patient's medication history has been checked to avoid drug interactions.
Drug samples, on the other hand, are often dispensed by doctor's office staff without the benefit of a prescription. The storage of drug samples is largely unregulated, leading to the possibility of spoilage or pilferage. Additionally, in case of a recall or other similar event there is a paper trail that simplifies patient notification.
s for brand-name drugs than for generics in order to encourage patients to choose less expensive alternative medications when they are available. However, by reducing a patient's copayment, prescription drug coupons also reduce a patient's incentive to choose a less expensive generic medication. As an example, NPR
reported in 2009 that the generic acne
medication Minocin cost $109 a month while a newer alternative called Solodyn cost $514 a month. Solodyn can be taken only once daily, while Minocin must be taken twice daily. Since Solodyn's manufacturer offers a coupon to reduce copays, patients may believe that both drugs cost the same amount.
Drug coupon advocates argue that coupon programs enhance patient compliance by reducing or eliminating drug copays.
As of 2008, the U.S. Food and Drug Administration (FDA) was planning a study to see if coupons make patients overlook drug risks and side effects in their effort to save money.
At a 2009 hearing some Massachusetts lawmakers articulated their desire to legalize prescription drug coupons in order to assist people who take drugs that have no generic equivalent.
Coupon
In marketing, a coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. Customarily, coupons are issued by manufacturers of consumer packaged goods or by retailers, to be used in retail stores as a part of sales promotions...
intended to help consumers save money on pharmaceutical drugs. They are offered by drug companies or distributed to consumers via doctors and pharmacists, and most can be obtained online. There are drug coupons for drugs from many categories such as cholesterol
Cholesterol
Cholesterol is a complex isoprenoid. Specifically, it is a waxy steroid of fat that is produced in the liver or intestines. It is used to produce hormones and cell membranes and is transported in the blood plasma of all mammals. It is an essential structural component of mammalian cell membranes...
, acne
Acne
Acne is a general term used for acneiform eruptions. It is usually used as a synonym for acne vulgaris, but may also refer to:*Acne aestivalis*Acne conglobata*Acne cosmetica*Acne fulminans*Acne keloidalis nuchae*Acne mechanica...
, migraine
Migraine
Migraine is a chronic neurological disorder characterized by moderate to severe headaches, and nausea...
, allergies, etc.
Drug coupons as pharmaceutical marketing
Direct-to-consumer or "DTC" marketing of prescription drugs is common in the United States. Patients frequently inquire about or request medications they have seen advertised in print or on television.Pharmaceutical companies use drug coupons as a marketing tool to stimulate demand for their products.
Drug coupons are commonly offered for new products to stimulate demand or ameliorate high co-pays for non-formulary (non-preferred products) as a way to level the playing field and remove the disincentive for using a drug that is not covered by insurance.
Restrictions
In an effort to avoid unregulated resale of drugs, the Prescription Drug Marketing Act of 1988 banned the traffic or counterfeiting of redeemable drug coupons. For instance, it is against the law to buy or sell coupons for prescription drugs on E-Bay.Types
Most drug coupons are printed by consumers using their personal computer and printer. Drug coupons reduce out-of-pocket costs for consumers in a variety of ways such as instant savings offers, free trial offers (also known as buy-before-you-try offers), copay reduction or rebates. Some drug coupons may only be used once, while other drug coupons may be reused.Besides getting drug coupons from doctors and from the Internet, some drug manufacturers fulfill the consumer requests for coupons by telephone. Regarding telephone offers, manufacturers can mail the coupon to the patient or tell them the coupon codes over the phone.
Generic drug companies rarely offer coupons, though insurance companies occasionally offer discounts on generic drugs.
Medicare Part D and drug coupons
MedicareMedicare (United States)
Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over; to those who are under 65 and are permanently physically disabled or who have a congenital physical disability; or to those who meet other...
was designed by the U.S. government in 1965 to help senior citizens and the disadvantaged afford health care. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) put Medicare Part D
Medicare Part D
Medicare Part D is a federal program to subsidize the costs of prescription drugs for Medicare beneficiaries in the United States. It was enacted as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and went into effect on January 1, 2006.- Eligibility and...
into effect on January 1, 2006, expanding Medicare benefits to include subsidized prescription products for Medicare beneficiaries in the United States.
Drug coupons may not be used for prescription products paid for in full or in part by any government sponsored insurance such as Medicare Part D, Medicaid, MediCal Tricare, etc. However if the patient is in the so-called Medicare Part D donut hole and is paying cash for his medicine, he may use coupons.
Products likely to have coupons
Coupons are prevalent in product categories where there is a lot of competition, such as dermatology products, lipid modifying agents and the medical treatment of ophthalmological conditions such as glaucomaGlaucoma
Glaucoma is an eye disorder in which the optic nerve suffers damage, permanently damaging vision in the affected eye and progressing to complete blindness if untreated. It is often, but not always, associated with increased pressure of the fluid in the eye...
. So-called lifestyle medications (such as baldness treatments, erectile dysfunction treatments or cosmetic oriented products such as wrinkle fillers) that are typically not covered by insurance are likely to have coupons.
So called specialty pharmaceuticals (such as TNF Inhibitors) also use coupons as a marketing tactic.
Financial advantages
Coupons for oral or topical agents can provide significant savings, sometimes as much as several hundred dollars per year.Coupons (usually in the form of co-pay assistance programs) for specialty pharmaceutical products, particularly injectable drugs such as TNF inhibitor
TNF inhibitor
Tumor necrosis factor promotes the inflammatory response, which in turn causes many of the clinical problems associated with autoimmune disorders such as rheumatoid arthritis, ankylosing spondylitis, Crohn's disease, psoriasis, hidradenitis suppurativa and refractory asthma. These disorders are...
s can be worth several thousands of dollars per year.
Safety of drug coupons as an alternative to drug samples
Unlike the distribution of drug samples to patients, without exception drug coupons require a valid prescription written by a licensed physician and dispensed by a registered pharmacist in order for the offer to be fulfilled. Having a physician and pharmacist involved in the transaction enhances patient safety, unlike the use of drug samples.This dual layer of professional scrutiny ensures that the drug product has been properly stored, is not expired, is dosed correctly in an age-appropriate fashion, and that the patient's medication history has been checked to avoid drug interactions.
Drug samples, on the other hand, are often dispensed by doctor's office staff without the benefit of a prescription. The storage of drug samples is largely unregulated, leading to the possibility of spoilage or pilferage. Additionally, in case of a recall or other similar event there is a paper trail that simplifies patient notification.
Drug coupons and healthcare costs
Critics of prescription drug coupon programs have argued that these programs lead to higher healthcare costs for consumers. Typically, American patients with health insurance pay a percentage of the cost of a prescription drug out of pocket, with insurance companies responsible for the rest of the medication's cost. Insurance companies charge higher copaymentCopayment
In the United States, the copayment or copay is a payment defined in the insurance policy and paid by the insured person each time a medical service is accessed. It is technically a form of coinsurance, but is defined differently in health insurance where a coinsurance is a percentage payment after...
s for brand-name drugs than for generics in order to encourage patients to choose less expensive alternative medications when they are available. However, by reducing a patient's copayment, prescription drug coupons also reduce a patient's incentive to choose a less expensive generic medication. As an example, NPR
NPR
NPR, formerly National Public Radio, is a privately and publicly funded non-profit membership media organization that serves as a national syndicator to a network of 900 public radio stations in the United States. NPR was created in 1970, following congressional passage of the Public Broadcasting...
reported in 2009 that the generic acne
Acne
Acne is a general term used for acneiform eruptions. It is usually used as a synonym for acne vulgaris, but may also refer to:*Acne aestivalis*Acne conglobata*Acne cosmetica*Acne fulminans*Acne keloidalis nuchae*Acne mechanica...
medication Minocin cost $109 a month while a newer alternative called Solodyn cost $514 a month. Solodyn can be taken only once daily, while Minocin must be taken twice daily. Since Solodyn's manufacturer offers a coupon to reduce copays, patients may believe that both drugs cost the same amount.
Drug coupon advocates argue that coupon programs enhance patient compliance by reducing or eliminating drug copays.
As of 2008, the U.S. Food and Drug Administration (FDA) was planning a study to see if coupons make patients overlook drug risks and side effects in their effort to save money.
Legality in Massachusetts
Prescription drug coupons are against the law in the state of Massachusetts unless the patient pays the entire cost of the prescription in cash.At a 2009 hearing some Massachusetts lawmakers articulated their desire to legalize prescription drug coupons in order to assist people who take drugs that have no generic equivalent.