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The drug discount card market facilitates the access of discounted prescription drugs to individuals lacking drug coverage or with high deductible health plans. Drug discount cards provide savings on both generic and brand name prescription drugs at participating pharmacies. Drug discount cards negotiate discounts and rebates with pharmacies and drug manufacturers. Some cards also offer mail-order pharmacy options with affordable shipping rates. The cards do not require income qualifications and are available to everyone regardless of their existing insurance coverage or financial situation. With rising healthcare costs straining individual budgets, drug discount cards have emerged as an affordable solution for medical prescriptions.
The global drug discount card market is estimated to be valued at US$ 1,674.2 Mn in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand for affordable healthcare: Rising costs of prescription drugs have negatively impacted household budgets. As referenced in the heading, growing need for affordable healthcare services is expected to drive the demand for drug discount cards. Drug discount cards provide savings of up to 80% on prescription drugs, thereby making healthcare accessible for masses.
Availability of generic drugs: Widespread availability of low-cost generic drugs has further boosted the adoption of discount cards. Drug discount cards offer deep discounts on generic drugs making them highly affordable alternative to branded drugs. Increased sale of generic drugs through discount cards is fueling the market growth.
Segment Analysis
The global drug discount card market is dominated by managed care organizations and pharmacy benefit manager sub-segments. The managed care organizations sub-segment accounts for over 50% market share as large health insurers are providing drug discount cards to their members. These organizations have tie-ups with multiple pharmacies which accept the drug discount cards provided by the insurers. The pharmacy benefit manager sub-segment is growing at a fast pace due to rising number of individuals and employers opting for pharmacy benefit management services to reduce the costs of branded and generic drugs.
PEST Analysis
Political: The government policies aimed at curbing the rising healthcare costs and making healthcare more affordable are driving the adoption of drug discount cards. Various states have enacted laws requiring or encouraging health insurers to offer drug discount programs to policyholders.
Economic: Rising inflation and growing out-of-pocket medical costs are compelling individuals to look for ways to reduce their prescription drug expenses. Drug discount cards help save 10-75% on prescription medicines.
Social: Growing geriatric population suffering from chronic diseases and rising popularity of discount health programs on social media are increasing awareness about drug discount cards.
Technological: Mobile apps and online platforms of pharmacy benefit managers and health insurers have made it convenient for users to access and use their drug discount cards from anywhere. Some cards can be directly uploaded to payment apps like Apple Pay.
Key Takeaways
The global drug discount card market is expected to witness high growth during the forecast period owing to rising healthcare costs and growing awareness about prescription drug savings programs. The global drug discount card market is estimated to be valued at US$ 1,674.2 Mn in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023 to 2030.
The North America region currently dominates the market due to large managed care organization and PBM network. Key players operating in the drug discount card market are GoodRx, SingleCare, WellCard Savings, RxSaver, Optum Perks, Kroger Prescription Savings Club, ScriptSave, Walmart Rx Savings Program, Prescription Hope, FamilyWize, NeedyMeds, and Humana.
Key players operating in the drug discount card market are GoodRx, SingleCare, WellCard Savings, RxSaver, Optum Perks, Kroger Prescription Savings Club, ScriptSave, Walmart Rx Savings Program, Prescription Hope, FamilyWize, NeedyMeds, and Humana. North America dominates the global drug discount card market with over 60% share as top managed care organizations and pharmacy benefit managers providing drug discount programs are based in US. The Asia Pacific region is expected to witness fastest growth during the forecast period owing to rising healthcare costs, growing geriatric population and increasing acceptance of digital health solutions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
