Press Room

How to lower your prescription drug costs

Money Management

Monthly financial advice
from the MACPA

For release: May 2009

The amount of money Americans spend on prescription drugs today is more than five times higher than it was in 1990, according to a Kaiser Family Foundation study.

Many people struggle to meet the steep price of medications for their families, particularly in a tough economy. The Maryland Association of CPAs offers these tips to make this necessary expense more affordable.

Consider generics

According to Congressional Budget Office estimates, generic drugs save consumers from $8 billion to $10 billion a year at retail pharmacies.

As a rule, generic drugs have the same active ingredients as their name-brand equivalents, but they can cost significantly less. In other words, you get the same benefit for less money. That’s why it’s a good idea to ask your doctor or pharmacist if there is a generic alternative for your medication and whether they would recommend giving that alternative a try. Given the possible savings, it may well be worth changing to the generic.

Be a good shopper

Where you buy your medications can have a big affect on price. Take the time to call more than one pharmacy in your area to find out how much they charge for your medications. You may find that one source is the cheapest for all your needs, or you may have to shop around to get the best deal on each prescription.

Purchasing large quantities is another possible cost-cutting move. Some pharmacies will give you a discount if you buy more than one month’s worth of medication at a time, for example, so be sure to ask about buying in bulk.

Get assistance

Even if the medicines you need are just too costly for your pocketbook, there’s no reason to go without them. In fact, many pharmaceutical companies run assistance programs to help those who can’t afford their medications.

You can find out more information on these programs online at www.rxassist.org. The site features a database that you can use to search out the assistance programs that make specific medicines available free or at a reduced cost to those who qualify. The site also offers information on Medicare Part D, state drug assistance programs and other
related topics.

Make the most of medicare

If you are eligible for Medicare, then you qualify for Medicare prescription drug coverage, no matter what your income, health status or prescription expenses.

In general, Medicare prescription drug coverage makes it possible to pay less for your prescriptions. You can find out more about these programs by going to www.medicare.gov and clicking on “Prescription Drug Plan.”

Use caution in your cost cutting

Many people shop online or order from overseas in order to lower their prescription drug expenses.

While these may be legitimate options, it’s important to use a great deal of caution when using them. You should be concerned not only about potential problems with medications that you receive from an unknown source but also about the safety of any credit card or other information you reveal.

The Food and Drug Administration offers tips for consumers, including a list of medications you should not purchase online. Find it by going to www.fda.gov.

Turn to your CPA

Your local CPA can offer many valuable ideas for spending your money wisely as part of a smart budget plan. Contact him or her with any questions you may have about your family’s financial situation.

Only CPAs are equipped to address your full range of financial needs with integrity and insight. In Maryland, CPAs must pass a rigorous two-day examination, adhere to strict ethical and professional standards, and, beyond college, complete 80 hours of continuing education every two years to be certified by the state — accountants do not.

Your doctor is certified; your lawyer is certified. Make sure your accountant is a certified public accountant.

For CPA referrals in your area, contact the MACPA at (410) 296-6250 or click here.

The Maryland Association of Certified Public Accountants (MACPA) is a statewide professional association that provides leadership, information and services for its nearly 10,000 CPA members, who are employed in private practice, industry, government and education. CPAs are business and financial professionals who have passed a rigorous two-day examination in order to be licensed by the state. CPAs are committed to protecting the public interest, and must adhere to stringent ethical and professional standards and continuing professional education requirements.

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