How does GoodRx make money?

Discussion in 'Pharmacy' started by Slippers, Apr 14, 2018.

  1. VA Hopeful Dr

    VA Hopeful Dr Senior Member
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    I don't care if goodrx dictates your cash price or not. But on what planet is a 2 order of magnitude markup OK?

    I've done cash only, completely transparent pricing medicine. It was great. I would be happy to go back to that if needed.
     
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  2. BenJammin

    BenJammin No Apologies
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    Because it's the best deal in town? You don't care about GoodRx dictating my cash price well I don't care about honoring your card. I'm not going to sell my products at a loss because you think my margins are too high.
     
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  3. VA Hopeful Dr

    VA Hopeful Dr Senior Member
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    Who is saying you need to sell at a loss?
     
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  4. honurasp

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    Chiming in a month later here, but here is a pretty thorough article that was posted today in Bloomberg about PBM spreads and how drug pricing works in retail pharmacies billing insurances:

    bloomberg()com/graphics/2018-drug-spread-pricing/

    A lot of blame is placed on retail pharmacies charging "exorbitant" cash prices for medications and creating "huge markups" on cheap drugs, but barely any of that money goes to the pharmacy for a profit. It's all clawed back by the PBMs and insurance companies. My favorite part of this article are the PBM lobbyists claiming that it's the pharmacist's "that are greedy for more money" for demanding transparency in PBM contracts. Lol
     
  5. AlPacino

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    Bingo. Read the fineprint when you check that user agreement on the GoodRx website/app. When you print or show that coupon you give them full access to your personal data; name, address, dob, phone number, email, etc. There is nothing in place to say that they aren't selling your information to spammers and advertisers. There is a reason alot of retail pharmacies are no longer accepting it.
     
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  6. BidingMyTime

    BidingMyTime Lost Shaker Of Salt
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    Pharmacies--both in hospital and retail have to mark up their prices because they can't have different prices for cash and insurance customers (per the insurance contracts.) The insurance contracts will only pay a fraction of the "cash" cost, so the cash cost has to be marked up in orders of magnitude, in order for the insurance's fraction of the payment to cover their costs. The system sucks, but this is the way it's done, and if you worked for any kind of health system, the medical billing for your charges is being done the same way. Solely because you deal with cash only, you can afford to offer a transparent, lower cost. Hospitals & pharmacies that take insurance don't have that option, because they would go out of business if they did.
     
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  7. VA Hopeful Dr

    VA Hopeful Dr Senior Member
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    Wrong (and I do work for a large health system). You can have cash prices that are 80% of Medicare allowable with no worries that CMS is going to come after you. Otherwise how would places like free standing imaging centers be able to offer major cash discounts?

    Besides, even if what you say is true for pharmacy (since insurance does work differently for y'all than it does for my end of the world) why are there pharmacists in this very thread that boast of being able to offer prices better than GoodRx without any coupons or anything?

     
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  8. CetiAlphaFive

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    I can answer this:

    I am absolutely breaking the rules because I think it's the ethically correct thing to do.

    They could absolutely penalize us if they found out
     
  9. VA Hopeful Dr

    VA Hopeful Dr Senior Member
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    I wonder how we get away with it then.
     
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  10. TikiTorches

    Physician Verified Account 7+ Year Member

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    Just like blame is put on doctors for healthcare costs
     
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  11. TikiTorches

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    Is that really the reason retail pharmacies dont accept it?
     
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  12. AlPacino

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    Cant speak for what other retail locations do but thats one of them. Also retail pharmacies that still accept GoodRx are losing revenue on every single medication dispensed with one of those coupons. Its a money-losing strategy.
     
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  13. TikiTorches

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    The money is made up in other ways. Grocery purchases, expensive walgreens items, etc
     
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  14. mgarph

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    Some aren't but some are. I think some offices just add it to save cash patients money and some are affiliates getting commission on each claim.
     
  15. VA Hopeful Dr

    VA Hopeful Dr Senior Member
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    I make no money from goodrx. Its mainly either for cash pay patients or patients with terrible insurance.
     
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  16. CetiAlphaFive

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    What the original reference to was offices that auto-generate it in the "Additional Notes" field
     
  17. VA Hopeful Dr

    VA Hopeful Dr Senior Member
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    That's an option?
     
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  18. CetiAlphaFive

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    Yeah. Dunno if they actually get paid for it. It's gotta be peanuts
     
  19. SCRph2014

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    We were specifically instructed by our pharmacy operations to throw them away in front of the rep dropping them off, but to keep the candy and pens :laugh:
     
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  20. SCRph2014

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    Unfortunately, the amount of money spent on goods outside of the pharmacy do not help to balance the pharmacy sales numbers. In my work, it's calculated as a separate department, which includes labor, rent, supplies, etc. Insurance reimbursement is the #1 way to maintaining a profitable pharmacy
     
  21. BenJammin

    BenJammin No Apologies
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    I don't believe for a second that physicians who send discount card codes do not know about it. That is such a crock.
     
  22. TikiTorches

    Physician Verified Account 7+ Year Member

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    About what? Discount cards are not covered in med school, residency, cme, or jobs.
     
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  23. VA Hopeful Dr

    VA Hopeful Dr Senior Member
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    Seriously? Are you one of those people who think we also get paid for every prescription we write?
     
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  24. BenJammin

    BenJammin No Apologies
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    What I'm saying is very clear. Two facts and you can only be one. You're either getting paid by a discount card company to put those codes into your electronic prescriptions or you're ignorant to what your eprescribe software is including in the prescriptions you transmit to pharmacies. Which is it?
     
  25. Modest_anteater

    Modest_anteater Is today your last day on Earth?

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    "Good RX essentially publishes the "Cash Price" of the pharmacy." Except often times it's inaccurate because different pharmacies paid much different prices for the drugs depending on when and where the drugs were bought whole sale.
     
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  26. Modest_anteater

    Modest_anteater Is today your last day on Earth?

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    seems like a good way to make money. say you get 1,000 patients on it that fill twice a month. that's 2,000 USD a month
     
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  27. CetiAlphaFive

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    I accidentally read some of Tikitorche's posts again and got a migraine
     
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  28. TikiTorches

    Physician Verified Account 7+ Year Member

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    I do not get any money from any prescriptions I write. I have blocked all my prescription info so it doesnt go to the drug reps. I give the goodrx card so meds are affordable. Some of my patients dont have insurance so a med like Abilify is relatively inexpensive on goodrx. You are making alot of untrue assumptions.
    I write my prescriptions by hand and give it to the patient. I dont know of any docs that get kickbacks from meds other than oncology docs.
     
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  29. VA Hopeful Dr

    VA Hopeful Dr Senior Member
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    If I knew how to automatically include the discount card codes in my prescriptions I would, and I'm not being paid anything by any discount card company.

    I could put them in manually but I'm too lazy for that.
     
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  30. CetiAlphaFive

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    You what?
     
  31. SCRph2014

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    There shouldn't be any doctors receiving any kickbacks from medications, per the law.
     
  32. TikiTorches

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  33. TikiTorches

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    They get the prescription data from an AMA list. I opted out of this. So reps dont come, and thats fine
     
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  34. CetiAlphaFive

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    I'm confused by this post.
    Are there any other employees in a hospital making a half million dollars per year?


    Google "PBM" and "DUR"
     
  35. VA Hopeful Dr

    VA Hopeful Dr Senior Member
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    Strawman. Our actual income is a fairly small percentage of healthcare spending (7-ish% last time I looked). So even if you cut our pay in half, you're only saving a little over 3%...
     
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  36. CetiAlphaFive

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    Next you're gonna tell me I can't blame the president for the economy
     
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  37. JamesL1585

    JamesL1585 TheAntiSavior?
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    The first idea I ever had for a startup, Iodine (who beat us to market), got purchased by GoodRx. I was sad.
     
  38. mgarph

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    Dude in my district (3 letter) got fired for this, luckily it was a tech...probably made as much from the commissions as he did from his salary
     

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