We have all heard about how Drug Costs are increasingly becoming a burden on our pocket books and the Healthcare System as a whole. For those of you planning for retirement, you would be wise to factor in general healthcare as well as medication costs. A recent study conducted for MedCo a pharmaceutical benefit manager, indicates that one in three retirees claim they are spending far more on their healthcare and prescriptions than they expected. The research indicates that for one in four middle-income retirees, $1 out of every $10 of their monthly retirement income goes to pay for medications alone. The average 65-year-old couple retiring today will need $70,000 just to cover Prescription drug costs. Twenty four percent claim to use very few to none of the cost savings tools available to cut their medication expenses. Now, more than ever, retirees are nervous about outliving their ability to afford the escalating costs of living well.
Medco is making it their purpose to educate retirees about tools to unlock hidden savings that can be used to reduce their prescription drug expenditures. Here are a few more figures revealed in the study:
- Nearly half of retirees stated they infrequently or never discuss with their Doctor ways to save money on their medications, such a switch to generic medications rather than name brand.
- Few knew about Drug Optimization: taking fewer pills at a higher dose to reduce the number of pills you have to buy…always work this out with your MD and pharmacist.
- 40% of Seniors who have reviewed Medicare plans indicated that their primary factor in choosing a plan is premium price.
- One in five seniors over age 65 who are still working stated one of the reasons they continue to work is to receive employer-sponsored drug coverage.
Medco then offered six (6) tools or strategies that can help reduce the out of pocket costs of medications. These tools are briefly described below. I will put the entire study as a page on my website with the link as shown below as well as my email address if you want to talk it through with me. I will assist as I can. - Save money by using a mail-order pharmacy for all your maintenance medications. Average annual savings with Generic through mail order equal $396…..THAT IS SIGNIFICANT SAVINGS!!
- In choosing a Medicare Part D Plan, look at more than just the premium price. An excessively lower premium price may indicate higher out of pocket costs and plan restrictions. Other important factors you should consider when evaluating the value of Medicare Part D plans:
-Out-of-pocket costs: what are the fixed co-pays and co-insurance. - -Size of the formulary (how many drugs the plan covers)…are your drugs covered under the plan??
-Coverage in the “donut hole”…Does it cover costs in the Coverage Gap between $2,510 and $4,050? There are tools on the internet that allow you to plug in your meds and estimate cost.
www.medicare.gov www.medicaredadvisor.net
- Ask your Doctor if there is a generic alternative for your drug. Most physicians will be more than willing to write for a generic med. However, if you do not ask, many times the physician writes for a name brand drug. In my opinion, the reason for this is 1) it is easier and 2) the pharmaceutical sales people are continuously marketing to physicians for the use of their name brand drug. They leave samples which also contribute to continuing on with the name brand. The total cost of a generic drug can be up to 80% less than its brand name counterpart.
- Ask your doctor if your medication dosage can be optimized. For instance, you take your blood pressure med 20mg twice daily…that causes you to buy 60 pills per month. If you can take twice the dose (40mg) one time daily, you would only need to purchase 30 pills. Another way to do this is to prescribe the larger dose but you break them in half to continue taking them twice daily. This can amount to over $500 per year. A word of caution: DO NOT do this without arranging it with your doctor!
- Learn the secrets to online savings. Probably the main disadvantage here is that many sites provide comparisons based on retail price…the price someone what is uninsured or are paying 100% for the bill. Otherwise, look for a plan that has an online comparison tool that compares prices based on your individual plan, not just retail prices. Many times the company web site will offer this tool…Use It!!! A recent study found people who switched to a lower-cost drug after using a prescription benefit provider’s cost-comparison tool saved $171 annually per medication.
- For those who see more than one doctor, including specialists are now taking many different medications. Each doctor may not know all the medications you are taking, how much and when. Here are two ways you can be wasting money (aside from the effects on your health) if you don’t tell your doctors about all your medications.
o Medication Duplication – two doctors prescribe a medication that does essentially the same thing as others you are taking.
o Medication Cancellation – Two doctors each prescribe a medication that cancels the other out.
Either way, you end up paying for medications that aren’t working the way they were intended. Since this is more than a cost saving measure, it could be a life-saving measure you must inform each of your doctors of all medications you are taking…this included over the counter meds and herbal supplements. The best way I have found to make sure you don’t leave anything out is to put them in writing and take the list with you when you present for any medical or mental health care. I will also provide a sample medication list on my site.
I think I have provided you with some pretty significant possibilities for major cost savings with your prescription plans. It is the time of year to be shopping for your 2008 plans. Be sure and consider the above suggestions to provide the most cost effective plan. If I can be of any assistance, my email address is
Email : ezhealthcare@sbcglobal.net
Web site: http://www.ezhealthcareonline.com
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