Save $200-Plus on Your Prescriptions

Need a pain reliever to ease those financial headaches? Prepare to pony up if you want the prescription-strength stuff.

According to an Agency for Healthcare Research and Quality survey released last January, the average yearly expenditure for prescriptions for someone under the age of 65 was $933 in 2005 (the latest stats available). About $330 of that was paid out-of-pocket.

By the way, those outlays don't get any lower the older you get. Those 65 and older shell out around $1,000 out-of-pocket annually to keep their pillboxes well stocked.

7 Ways to Score Cheaper Drugs

Saving money on medication requires some up-front work. But once you institute these changes, it'll be easy to save cash month after month, particularly on maintenance medications.

In order from least to most time-invasive, here are six ways to save on your pharmacological needs.

1. Ditch the convenience dispensers and save $53 a month: If your drug dealer of choice is a drugstore chain like Rite Aid, Walgreen or CVS Caremark, it might be time to switch suppliers. A 2006 Consumer Reports survey found that the best prices for prescriptions -- from cheapest to costliest -- are typically: online pharmacies; mass merchants (like Wal-Mart, Target, and Costco); supermarkets like Kroger; independent drugstores/pharmacies; and, finally, the aforementioned drug chains. (Heed the FDA's advice on buying drugs online by first reading its report.)

Source: 2006 Consumer Reports survey.

2. Comparison-shop online: Although online pharmacies are generally the lowest-cost providers, it depends on what exactly you take. Use comparison shopping sites PillBot.com, PharmacyChecker.com, and DestinationRX.com to see where to score the cheapest (medically necessary) fix. We priced out a one-month supply of four common drugs and pocketed $79 in savings.

3. Go generic and save 30% to 80%: Talk to your doctor about switching to the generic form of the medication, if available. This alone can result in up to 30% to 80% in savings. According to the National Association of Chain Drug Stores (as reported by the FDA), the average price of a brand-name prescription drug was $96.01 in 2004, while the generic was $67.27 less at $28.74.

4. Buy mail-order maintenance meds: Most major health plans have partnerships with mail-order pharmacies (such as Medco) which can cut your pharmacy co-pays by 15% to 35%. Since it can take days to fill and mail your order, this option is most convenient for drugs you take every day.

5. Consult your doctor for ways to save: There are many ways your physician can help you cut costs. (As with all things medical, it is best not to play doctor and try them on your own. Discuss these options with your doctor.) For example, if you're starting a new drug, ask your doctor for free samples. They often have promotional samples lying around and can give you a few days' (or weeks') worth of drugs for free. If you take a medication that comes in solid pill form, see if your doc will prescribe twice the dosage and direct you to take only half of each pill at a time. This strategy can save you quite a bit, especially if the medication isn't available in generic form. (You can find pill cutters at most drugstores.)

6. Stick with "the plan" and save $33 a month: Most insurance plans have several pricing tiers that affect your co-pay. Keep costs down by sticking with your plan's "preferred drug list" (or "formulary" or approved list of drugs). The average copayment for a non-preferred drug in 2007 was $43. Compare that to $25 for a name-brand drug on a preferred drug list (where there's no generic substitute) and $11 for the generic version.

Bring the printed list of preferred drugs to your doctor appointments. If a generic or nonpreferred drug isn't as effective, discuss workarounds with your doc. For instance, one Fool saved $100 a month by getting monthly allergy shots (covered under the plan) in lieu of her nonpreferred medication.

7. Look into eligibility for additional discounts: AARP offers a drug discount card to members. Go to aarppharmacy.com for more. Depending on your income and other factors, you may be entitled to even greater discounts through a patient assistance program. For more information, go to www.ashp.org/pap and rxassist.org.

Of course, the best way to save on prescriptions is to avoid having to take them in the first place. So eat those leafy greens, get some exercise, and improve your bottom line (both kinds).

Dayana Yochim dispenses money-saving, money-making advice at Fool.com. No co-pay required.