KNOW YOUR PRESCRIPTION DISCOUNT CARD

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KNOW YOUR PRESCRIPTION DISCOUNT CARD
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A prescription discount program is designed to
help people save money on prescription
medications by offering its customers a card
called the prescription discount card used when
paying for prescriptions issued from medical
institutions. Pharmacies are willing to accept
these discount cards from customers for a variety
of reasons.
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The first of these is a matter of competition
between pharmacies. Pharmaceutical is a 500
billion industry, so competition is fierce. If
one pharmacy does not accept the discount card,
the pharmacy down the street can, thereby gaining
the business of the cardholder.
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Remember when you started that lemonade stand
when you were a kid, and then that pesky
neighborhood boy copied your idea, but sold his
lemonade for 5 cents less? Unless you could prove
that your lemonade was worth 5 cents more than
his, you had to lower your price as well.
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Since medication from one pharmacy is identical
to medicine from another, pharmacies are obliged
to honor the discount card. Second, even in the
absence of competition, pharmacies understand
that some medication is helpful, but not
essential (think antacids), so if the price is
too high, some may choose not to fill their
prescriptions at all. In other words, there is a
whole market segment to be gained by accepting
the discount cardthe segment that, based on
price, would have to decline to purchase their
medication unless the price was lowered.
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Third, pharmacies understand that by accepting
the discount card, they get a new customer
through the door that may end up buying much more
than just their medication. Ever wondered why
Walgreens places their pharmacy (the main reason
youre in the store) all the way in the back? As
you walk back to the pharmacy, you pass thousands
of products from groceries to batteries to
stuffed animals to greeting cards tothe list
goes on and on. So the more people they get
through the door, the more money they make on
items other than medication.
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Prescription discount programs are created by
pharmacy benefits managers (PBMs) who work with
pharmacies in a variety of ways. In the case of
prescription discount programs, PBMs negotiate
discounted prices for their cardholders, which
pharmacies are willing to accept for the reasons
mentioned above. But whats in it for the PBMs?
When a prescription is filled utilizing one of
the PBMs discount cards, the PBM gets a smaller
percentage of the revenue from that sale than the
usual.
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In essence, everyone wins. Pharmacies get more
business. Members, more known as cardholders have
their prescriptions at a cheaper rate. And PBMs
get a share of the profits. Its a classic win,
win, win situation.
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For more information go homepage
www.MedicationCard.org
Phone [phone] info_at_medicationcard.org
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Thank You