Drug Discount Cards as A Strategy to Support Small Employers

Drug Discount Cards (DDC) can provide valuable point-of-sale price relief for consumers who are either uninsured or underinsured for prescription medications. DDCs offer access to PBM-negotiated prescription drug discounts, outside of the pharmacy benefit.  While they are often frowned upon by health plans for a variety of reasons, they play an increasingly significant role and are becoming a larger piece of the healthcare marketplace. Today, I want to discuss a specific situation where plans can actually create an advantage for their clients and for themselves by offering a DDC option. Small employers who offer a medical benefit but not a pharmacy benefit may be receptive to a DDC option.

If a small business is not ready to afford a pharmacy plan, why not offer them a health plan-branded DDC as part of the benefits package?  It is, after all, in the best interests of both the plan and the small business to support lower-cost prescriptions and better access to medications in any way they can.

Employees without a pharmacy benefit are more likely to experience prohibitively high out-of-pocket costs for prescription drugs.  High out-of-pocket costs are a major driver of medication nonadherence¹, and nonadherence contributes to poorer outcomes² – health, wellbeing, and productivity can suffer. When your client’s employee-members can’t afford their medications, your plan-branded DDC can be of assistance. A branded DDC offering gives health plans the opportunity to meet a real need for some up-and-coming small businesses.

Beyond reducing out-of-pocket costs for your client’s employees and promoting medication adherence, health plans should consider the DDC strategy because it can nurture future opportunities.  When health plans establish supportive growth-oriented relationships with growing businesses, both parties are better positioned for future successes: Someday that DDC card option may evolve into a full-fledged pharmacy plan.

While working with an employer to provide a full pharmacy benefit is always best, in certain situations a DDC is a good step in the right direction. 

1. Source, 8 Reasons patients don’t take their medications, AMA Wire, October 16, 2016. https://wire.ama-assn.org/practice-management/8-reasons-patients-dont-take-their-medications
2. Overcoming Barriers to Medication Adherence for Chronic Diseases, CDC Public Health Grand Rounds, February 21, 2017, https://www.cdc.gov/grand-rounds/pp/2017/20170221-presentation-medication-adherence-H.pdf