How a drug discount card can provide medicine at a discounted price, while still staying profitable? Drug discount cards help patients save on medication costs, but you must be wondering how are prescription medication savings card providers able to deliver on their promise of big discounts on your prescription medications? Here is how a medications savings program works: First, a company known as Pharmacy Benefits Manager (PBM) sets up a network of participating pharmacies. PBM is like an adjudicator they negotiate with each pharmacy chain, including big-box chains such as Walgreens, Safeway, and Target, and local pharmacies, to offer discounts on drugs they dispense. The discount on medicines would vary from manufacturer to manufacturer, and also on the pharmacy, because each pharmacy chain may agree to a different percentage for the discounts. The PBMs work with marketers, that may be for-profit or notfor profit organizations, to market their prescription savings card. Some marketers work with groups, while others could be multilevel marketing organizations.
A prescription cost savings card has four components: The negotiated discounted price: The PBM negotiates the best discounted price with the pharmacies. The final discounted price will vary on multiple factors, such as the size of the PBM and the market share it has. Pharmacy transaction fee: This is the amount the PBM earns to cover their costs for setting up the network. Marketer fee: This is paid by the PBM to the marketers to promote and distribute their prescription savings card to healthcare facilities, patients, nurses, doctors, etc. Marketers are able to make money as they earn some amount on each transaction. Now, you must be wondering how would a pharmacy be able to earn profit by offering medications at a discounted price, even when everyone in the network seems to be making profit? Well, the pharmacy is still able to earn profit even by selling medications at a discounted price which is lower than its printed retail price. This is how it happens.
The pharmacy earns profit even on the discounted price as it never offers discounts to the amount that it loses money on the transaction. The pharmacy is able to sell the medications that it otherwise wouldn’t have. For example, a patient may not be able to afford a $100 prescription, but they may buy it if offered with a discounted price, say $75 or less. The pharmacy is able to earn customer loyalty. If a customer is offered medicines at discounted price, they are more likely to keep ordering from that pharmacy for their future prescriptions. When a customer walks in the pharmacy with their prescriptions savings card, they are more likely to make non-medicinal purchases for the products in the drug store. That’s the reason pharmacies are usually placed behind the drugstore, making the customers walk the aisle, increasing the chances of additional purchases. When all the pharmacies are offering discounts, the one that is not offering discounts is likely to lose business. That’s why local pharmacies also begin accepting drug discount cards.
Patients benefit by getting medicines at discounted price The patients also benefit from a medications savings card as they are able to get their medicines at a discounted price, and hence can continue with their treatment regimen. If you too are also looking for a prescription savings card that you can use for medications savings, save on flu vaccinations, and save on meds that you require for the treatment of your various diseases, EzRx drug discount card is the one that you would find to be highly useful.