Wal-Mart started this discount drug competition that has heated up. Now every big chain pharmacy in the country has been matching or trying to beat their prices. The going rate for generics is $4/mo supply. Most PDPs are higher, usually about $7/mo. It doesn't take a rocket scientist to see the cost savings FOR THAT PARTICULAR DRUG, and gives rise to the question "Why bother with a PDP?"
Three reasons: 1) When additional drugs are needed, not prescribed at the moment. 2) A late penalty of 1%/mo FOR LIFE when a PDP is now really needed. 3) The discount program may come to an end.
I interview my prospects to see how many drugs they take. If they only take 1 generic, I advise them to enroll in the cheapest PDP available. It usually comes with an annual deductible, which that client will never come close to reaching. Furthermore, I tell them they might as well buy the $4 drug using cash and not present their PDP card, because the use of their card will tally towards the initial coverage limit, which is to their disadvantage, should a health crisis occur. This way, they save money and avoid paying the late enrollment penalty for not having a PDP at the same time. The PDP stands ready to help in a time of unexpected crisis... as a fall-back plan.
Now I hear that the discount drug competition may drastically change for next year. Some pharmacy chains have been told their present company policy of matching competitor's pricing will end this year, and no info on what next year will bring. It seems that many drugs have been sold as loss-leaders, and with the economy sagging, belts need to be tightened. The problem is therefore: What if the patient is led to think he will continue to get his Rx at $4, only to find out come January that this is no longer available, and misses the window to enroll in a PDP?
Three reasons: 1) When additional drugs are needed, not prescribed at the moment. 2) A late penalty of 1%/mo FOR LIFE when a PDP is now really needed. 3) The discount program may come to an end.
I interview my prospects to see how many drugs they take. If they only take 1 generic, I advise them to enroll in the cheapest PDP available. It usually comes with an annual deductible, which that client will never come close to reaching. Furthermore, I tell them they might as well buy the $4 drug using cash and not present their PDP card, because the use of their card will tally towards the initial coverage limit, which is to their disadvantage, should a health crisis occur. This way, they save money and avoid paying the late enrollment penalty for not having a PDP at the same time. The PDP stands ready to help in a time of unexpected crisis... as a fall-back plan.
Now I hear that the discount drug competition may drastically change for next year. Some pharmacy chains have been told their present company policy of matching competitor's pricing will end this year, and no info on what next year will bring. It seems that many drugs have been sold as loss-leaders, and with the economy sagging, belts need to be tightened. The problem is therefore: What if the patient is led to think he will continue to get his Rx at $4, only to find out come January that this is no longer available, and misses the window to enroll in a PDP?
