Tip of the Month for March 2006
Should I use my insurance?
One of the points I try over and over to get across to my clients is that insurance companies do not lose money. Not just health insurance companies; but auto insurance, home ownerâs insurance, life insurance, or any insurance company. It is a business like any other. None of them can survive unless they bring in more money than they pay out. This is simple economics.
You may think that you are saving money every month on your prescription insurance coverage when, in reality, you are not. Through speaking with many pharmacy customers and clients, Iâve come to the conclusion that prescription insurance for someone over the age of 45 is approximately $65 a month. Yours may be more or less, but $65 is about average.
If you are average, you get 3 prescriptions per month, one brand name drug and 2 generics. The co-pays for brand are typically $50, and for generic, $10. This means the average person with good prescription coverage is spending $135 ($65 + $50 + $10 + $10) a month for prescriptions.
By using some very popular medications as examples, I will show you how you can save by not using your insurance. The following drugs are, in order, the top ten prescribed medications of 2004:
1.
Hydrocodone/APAP â Depending on how many you need to take per day, that will determine your savings. At Costco, you can one hundred tablets for $11. Thatâs taking more than 3 per day for a month. If you are taking less than three per day, buying in bulk will save you money on this drug. Since this is a controlled substance, make sure your doctor writes a large quantity on the prescription as many pharmacists will not fill extra for this medication.
2.
Lipitor â Lipitor is just over $100 for 30 tablets. You can cut this medication in half, saving about $50 a month. This makes it about equal to the average $50 co-pay. Many doctors and pharmacists do not realize that you can double the dose and take statins (this class of medication) every other day and get the same result. So, you can multiply your dose by four, cut the tablet in half, and take it every other day. This reduces the cash price for statins, in this case Lipitor, by 75%. Here you will spend $25 a month, saving $25 ($75 without insurance) using this technique.
3.
Lisinopril â This medication is an ACE inhibitor used for blood pressure. Lisinopril is relatively inexpensive. Cash price is around $10 for 30 tablets, about the same as the average co-pay. By buying a large quantity, you can save. One hundred tablets, depending on the strength, will cost you between $12 and $27 at Costco. You can also double the dose and cut the tablet in half, saving up to 50%.
4.
Atenolol â Atenolol is an older medication that is very inexpensive. This is one of those medications that you should definitely buy in a large quantity. You can easily find 100 tablets for less than $10, you could even buy 200 for about $13.
5.
Synthroid â In some states, Synthroid is on the negative formulary list. This means that is cannot be substituted with a generic. This medication should also not be cut because of the precise dose that is needed. It is less expensive to pay cash for Synthroid than a $50 co-pay. For about $50, you can purchase 90 tablets cash. Thatâs a three month supply.
6.
Amoxicillin â Fortunately, this antibiotic is used for just a short period of time, usually 7 or 10 days. The cash price is right around $10, just like the generic co-pay. Itâs pretty much a wash for this medication since you will not be taking it every month.
7.
Hydrochlorothiazide â This is another older, cheap, popular medication. You should pay cash for a large quantity. Like atenolol, you can find 100 tablets for less than $10, or even 200 tablets for about $13.
8.
Zithromax â This medication is now available in generic now. The price is still high, about $45 for the usual 6 tablets. Soon there will be more competition for the generic and the price will come down even more. For now, using your insurance is probably the best bet for this medication. You will be spending the $10 co-pay rather than the $4 cash price.
9.
Furosemide â Another cheap and popular medication. Buy a large quantity to save. You will easily find 100 or more tablets for less than $10.
10.
Norvasc â The 5mg strength is about $50 a month, the 10mg strength is about $65. By paying cash for the 10mg strength and cutting it in half, you will pay about $33 for the month, instead of your $50 co-pay, about a $17 savings. This can also be done if you need the 2.5mg dose. Cutting the 5mg strength in half will save you about $25 a month.
These are just quick examples of how you can stretch your medication dollar. I donât tell too many of my clients to cancel their prescription coverage. By having insurance, you are protecting your self against future catastrophic costs. You should not just accept your drug insurance co-pays as the only way to pay for your medications. Use creativity and some originality and you will dramatically reduce your overall costs at the pharmacy counter.
Is insurance worth it? 
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