Drug Discount Card
A free card or app (like GoodRx) that provides negotiated prescription discounts at retail pharmacies — separate from insurance.
How It Works
Drug discount cards work by contracting with PBMs to access negotiated rates at pharmacies. They're free for consumers and make money through fees paid by pharmacies for each transaction. GoodRx is the largest, but SingleCare, RxSaver, and many others operate similarly. Discount cards are most useful for patients without insurance, those in a deductible phase, or when the discounted price is lower than the insurance copay (this happens more often than you'd think). They don't count toward insurance deductibles or out-of-pocket maximums. Prices vary between cards and between pharmacies, so shopping around is recommended.
Related Terms
- Out-of-Pocket Cost — The amount a patient pays directly for a prescription drug — including copays, coinsurance, and deductible payments.
- Cost Plus Pharmacy — A pharmacy model that sells generic drugs at acquisition cost plus a fixed markup (typically 15%) and a dispensing fee — bypassing the traditional PBM-driven pricing system.
- Pharmacy Benefit Manager (PBM) — A company that acts as a middleman between drug manufacturers, insurers, and pharmacies — negotiating drug prices, managing formularies, and processing claims.
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About This Definition
This definition is part of the DrugPrice Drug Pricing Glossary — 34 terms explaining how prescription drug pricing works in the United States. All definitions are written in plain language for patients, caregivers, journalists, and healthcare professionals.