Is everyone getting 9 million prescriptions filled in this New Year, or is it just me? The whole process is a mess, and it’s bizarre that we can’t do better. That said-rant over-when you go to pickup a prescription and not only is the experience bad, but the price is worse, it’s wildly painful. Here are some of my favorite tips to make the sticker shock a little better with a little less bite.
Tip #1: GoodRX!
Do you know about them? If you do, you already love them. If you don’t you soon will. I have used them for YEARS and am constantly delighted.
What is it?
It’s an app-completely free-that downloads coupon codes different pharmacies accept based on the medication.
How does it work?
When you get a prescription, enter the name and dosage into GoodRX. It will search the pharmacies around you (based on location) and tell you what the price is at all of them.
What about insurance?
It ONLY uses the coupon code. It does NOT use your insurance in anyway-so anybody can use GoodRX at anytime.
But what about my deductible? I love hitting my deductible.
I hear you. However, these days, deductibles are so insane, that unless you regularly have a lot of large medical bills (and with a little bit of luck) you will NOT hit your deductible. I NEVER pay more on a prescription in the hopes that it will end up affecting my deductible unless I am SURE there is something coming up that will push me into that bracket. Why pay more if you don’t need to, and why bet that something expensive is going to happen to you?
To give you an example, we will use a prescription I actually take. Every few months, I have a migraine, (which is a little bonus now that I am over 40). Anywho, Eletriptan is the medicine I take. If you put it into GoodRX, the prices in my area range from $17.28 (both CVS and Target) all the way up to $89.32 at Walgreens. That’s insane and it just shows you how much process fluctuate with different companies. I always check my insurance price compared to GoodRX, and I promise you, GoodRX is cheaper than MY INSURANCE at least half the time.
Tip #2: HSA versus FSA
I love me a good HSA account. HSA stands for Health Savings Account and it is pre-tax dollars set aside for medical expenses. I remember an executive at a company I worked at, talking about HSAs. (He had sold his company for $20M to this larger company and was helping the transition). He told me how he ALWAYS thought HSAs were a great idea, “because who wouldn’t always need $$$ set aside for medical things?” I completely agree. HSAs are great because they are pre-tax, so tons of people are saving at least 25-30% on every dollar. If you do the math, and put in $3,000 over the course of year, that would be the same as spending $4,500 after tax dollars. It’s like $1,500 for FREE. The best part of HSA’s is they NEVER expire. I have one from an employer that I worked at 7 years ago, and still use. If you can do an HSA, do it. If you can max it out (there is a limit per year), do that. You will never NOT need $$$ for medical expenses.
FSA stands for Flexible Savings Account. Do I love them with the same enthusiasm as their much better sibling the HSA? I do not. But they are still better than no option. I don’t love FSAs as much for 2 reasons-the first, they have to be spent the same calendar year. That means use it or lose it. Now, you can use it on a ton of everyday products (Google: FSA Approved Items) like sunscreen, feminine products, glasses, etc. So, if push comes to shove and you need 127 bottles of Aleve, you’re covered, but nobody really wants to do that. The second reason I do not like them as much, is most of them you have to submit receipts for almost everything. It’s a pain for sure. The advantage of course is again, pre-tax dollars. If you have regular prescriptions, and know on average what you spend on medical, it’s worth doing for the tax advantages.
Both FSAs and HSAs issue a card with the money on it, so you can just pull from it any time you have a doctor’s appt, prescription or a qualifying expense. They are a great way to pay for all things medical and avoid taxes. And who doesn’t want that? 😉