Drug coupon

Pharmaceutical drug coupons
Prescription drugs Over-the-counter drugs
Legislative acts Drug Price Competition and Patent Term Restoration Act of 1984 Prescription Drug Marketing Act of 1987
Government agencies United States Department of Health and Human Services Food and Drug Administration

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.

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.^[1] 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.^[2]

Medicare Part D and drug coupons

Medicare 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.

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 glaucoma. 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 inhibitors 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 copayments 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.^[3]

Drug coupon advocates argue that coupon programs enhance patient compliance by reducing or eliminating drug copays.^[2]

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.^[2]

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.^[4]

See also

• Coupon
• Pharmaceutical industry
• Pharmaceutical drug

References

1. ^ "Milestones in Food and Drug Law History". Federal Drug Administration. April 30, 2009. http://www.fda.gov/AboutFDA/WhatWeDo/History/Milestones/ucm081229.htm. Retrieved 2009-06-25. 
2. ^ ^{a b c} Kritz, Francesca (December 3, 2007). "Check out drug coupons, then check bottom line - Many consumers don't know that deals are available. But generics are often still cheaper.". Los Angeles Times. http://articles.latimes.com/2007/dec/03/health/he-coupons3. Retrieved 2009-06-28. 
3. ^ Joffe-Walt, Chana (20 October 2009). "Drug Coupons Hide True Costs From Consumers". NPR. http://www.npr.org/templates/story/story.php?storyId=113969968. Retrieved 19 November 2011. 
4. ^ Murphy, Matt (November 29, 2009). "Lawmakers push drug coupons". Lowell Sun. http://www.lowellsun.com/todaysheadlines/ci_13889253. Retrieved 2009-11-30. 

External links

• List of Drug Coupons Arranged Alphabetically By Therapeutic Class
• AARP Article Regarding Drug Coupons
• LA Times Article on drug coupons
• If Drug Copays Have You Down, Check For A Coupon ; NPR Report 1/01/2011
• Coupons for Patients, but Higher Bills for Insurers; NY Times 1/1/2011

Categories