5 Ways to Cut Down Your Prescription Drug Costs During Retirement

May 20, 2008 By Debbie Dragon

People over the age of 65 make up only about 14% of the U.S. Population; but they consume more than a third of the $266 billion or more spent on prescription drugs in a year. Younger retirees, those between the ages of 65 and 69, take about 14 prescriptions per year; while those who are over the age of 80 are averaging 18 prescriptions annually.

Unfortunately, there are not many people who are lucky enough to be retiring from an employer that offers health coverage during the retirement years. Financial planners work with people to determine how much money they’ll need to replace their income during their retirement years – but very few focus on how much money you’ll need to save for your aging medical needs. With drug prices rising annually, and with some of the more commonly prescribed drugs for the older population costing a steep $1,500 per year – it’s easy to see that your medical needs should be taken into consideration in determining your retirement money needs.

Here are 5 ways to reduce your prescription drug costs during retirement:

1.  Buy Generic. You can save up to 80% off the brand name drug prices when you buy the generic version. When a doctor prescribes a medication, always ask whether there is a generic available and request that he or she write your prescription for that one, instead. Often, doctors remember the constant sales pitches they receive from the name brand companies and simply forget there are generics available – so don’t be afraid to ask.

2.  Comparison Shop. As with any other purchases you make, you can often save money simply by comparing the prices at several retailers before making your purchase. Try checking prices at Costco and/or Wal-mart for prescription drugs- they are almost always less expensive than nonchain pharmacies. Some neighborhoods offer a discount pharmacy that offers lower priced medication and caters to people without health insurance. If your own neighborhood does not offer such a service – check for mail-order discount pharmacies.

3.  Split Pills. Higher dosages of many medications cost the same as buying a smaller dosage. Whenever possible, ask the doctor to prescribe a higher dosage strength than you need, and then you can cut the pills in half to get the strength you actually are prescribed. There are pill splitters available for sale at most drug stores that ensure you split the pill evenly and get the prescribed dosage. You’ll get twice as many dosages for the same price.

4.  Shop Online. Drugstore.com is a well known bargain provider of prescription drugs. Just be sure that wherever you buy from has got a solid reputation and that the drugs are reviewed by physicians.

5.  Discount Programs. There are a number of discount prescription health plans that you can pay a membership fee to receive discounts on medication. Medco Health Solutions is one fo the most well-known and respected discounted programs. Visit www.medcorxdiscountprogram.com to get details and see whether or not you can save on your prescription drugs with this discount program.

Posted in budgeting, financial plans, health, insurance, personal finance

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