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Money Saving Tips for Seniors - Generic Drugs

Posted by Matt Johnson on Mon, Apr 27, 2009 @ 09:55 AM

Bob Moos wrote a great article for the Dallas Morning News about how seniors can save money by using generic drugs.  Since I just posted an article about the 4 Ways to Save Money on Home Care, I thought this would be a nice compliment.  


3 Great Resources for Saving Money on Prescription Drugs


1.  The FDA's Online Orange Book
This is the definitive resource that lists all approved drugs and their “Therapeutic Equivalence Evaluations” or TE.  On the search screen, type in the drug’s trade name (e.g. Lipitor), then click submit.  On the results screen, you’ll likely see several matching drugs because there is a line for each dosage. 

If there is a generic version of the drug, there will be a code listed in the “TE Code” column.  


2.  Wal-Mart’s $4 Formulary
The retail giant Wal-Mart is changing the way we think about prescription drugs with their $4 formulary.  They now have over 1,000 prescription drugs that cost only $4 for a 30 day supply.  That’s cheaper than the over the counter drug costs for many popular drugs like Zyrtec or Claritin.  


3.  Destination Rx
Destination Rx is a very easy to use compliment to the FDA’s Orange Book.  Their website allows you to search for any drug and gives you price info as well as money saving alternatives.  This is a wonderful resource for retirees who no longer have access to similar tools provided by their employer-paid commercial insurers.

Tip (3.5 if you’re counting down our list).  If you’re still employed or otherwise have access to a Health Savings Account, then make the most of it.  Health Savings accounts allow you to put money aside before taxes and then spend it on your prescription drugs and other healthcare costs.  This can save a lot of money, but does require some forethought and planning for your upcoming healthcare needs. 


Do you already take all generic prescriptions?  How much money do you save?


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