RxSaveCard is Revolutionizing Healthcare

Lowering Prescription Drug Costs: How RxSaveCard is Revolutionizing Healthcare

As healthcare costs continue to rise, prescription medications have become one of the most significant financial burdens for individuals and employers alike. Chris Crawford, CEO and Founder of RxSaveCard, is tackling this issue head-on by offering an innovative solution to reduce prescription drug expenses. Crawford's extensive background in employer benefits consulting has driven him to create a platform that helps employers and their employees access lower-cost medications without altering their existing pharmacy benefit managers (PBMs).

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The Challenge of Rising Prescription Drug Costs

The increasing price of healthcare, particularly prescription medications, is putting pressure on self-insured employers, who are actively seeking ways to cut costs. Crawford highlighted that prescription drugs are one of the most widely used employee benefits, and their rising costs are becoming a significant issue.

New treatments, like cell and gene therapies, are entering the market with sky-high price tags, affecting a small patient population. Conversely, medications for chronic conditions like obesity—specifically GLP-1 drugs—are in high demand but come with costs ranging from $11,000 to $13,000 per year. However, only 18% of employers with over 200 employees can afford to cover these medications, even though up to 45% of employees may benefit from them.

Additionally, the role of PBMs has exacerbated the problem. These intermediaries profit from marking up the cost of drugs, a practice known as “spread pricing,” which can lead to inflated drug prices for consumers. Crawford founded RxSaveCard to address this issue by providing individuals with the opportunity to purchase prescription medications for less when paying with cash instead of insurance.

How RxSaveCard Works

RxSaveCard partners with over 65,000 retail pharmacies, including Mark Cuban’s Cost Plus Drugs, to offer discounted prescription prices. The platform allows employers to continue working with their current PBMs while still providing their employees access to cash prices for medications.

PBMs, which are aligned with insurers, dominate the industry. These large PBMs account for 90% of the market, leaving smaller, more transparent PBMs with less than 10% of the share. Crawford acknowledges that it’s difficult to challenge these industry giants, but he emphasizes that RxSaveCard is not asking employers to abandon their existing PBMs. Instead, the company provides a complementary service to help employers reduce prescription costs.

With RxSaveCard, employers can choose which pharmacies to authorize for prescriptions and set a budget for how much they want to contribute toward each prescription. The card is only charged when used, so employers don’t have to pre-fund it. Employees can use the card to find the lowest prescription prices at participating pharmacies, ensuring they pay less for medications, often as little as the cost of the drug itself.

The Benefits of RxSaveCard

RxSaveCard empowers employees to save on prescription costs without having to change their healthcare plan. At the pharmacy counter, the card compares multiple discount cards and instantly applies the lowest available price. In many cases, employees may receive their prescriptions for free.

Real-World Savings: Case Studies

Crawford shared examples of how RxSaveCard has helped employees save money on prescription medications.

• Scenario 1: Bipolar Disorder Medication
  An employee with bipolar disorder uses Lurasidone (Latuda) for symptom management. Under their employer’s PBM, a 90-day supply costs $1,664.77, with the employee paying $332.95 out-of-pocket. Using RxSaveCard, the same medication costs only $23.50, saving both the employee and the employer significant amounts. The employer saves $1,308.32 per fill, or $5,233 annually, while the employee saves $332.95 per 90-day supply, amounting to $1,331 per year.

• Scenario 2: Cancer Medication
  A cancer patient uses Imatinib (Gleevec) as part of his treatment. Through his employer’s PBM, a 30-day supply costs $6,067.69, with the employee paying $1,213.54 out-of-pocket. With RxSaveCard, the total cost of the drug is just $13.18 through Mark Cuban’s Cost Plus Drugs, and the employee receives the medication for free. The employer pays only $13.18, saving thousands of dollars on this critical medication.

The Future of Prescription Savings

Crawford stresses that the current model, where PBMs add a markup to the cost of medications, inflates prices for consumers. With the rise of cash-based programs like RxSaveCard, Crawford believes the healthcare system could see a shift toward more transparent pricing, allowing consumers to purchase medications directly from pharmacies at a fair price.

“As the marketplace evolves, removing the middleman and allowing pharmacies to sell directly to consumers at cash prices often results in lower costs,” Crawford explained. This model not only helps employers save money but also ensures that employees can afford the medications they need to maintain their health.

Conclusion

RxSaveCard is revolutionizing how employers and employees manage the rising costs of prescription drugs. By offering a transparent and cost-effective solution, RxSaveCard enables employees to access affordable medications without the need to change their existing healthcare plans. As prescription drug costs continue to soar, RxSaveCard’s innovative approach provides a much-needed alternative to the traditional PBM model, making healthcare more affordable for everyone.