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Drug discount cards provide discounts and savings on prescription drugs to individuals without insurance or with high deductible health plans. These cards are primarily accepted at participating pharmacies and are used by cardholders to pay a discounted price for their medications. Drug discount cards help customers save an average of 20% on the cost of medicines for conditions such as diabetes, blood pressure, cholesterol, depression, asthma, and others.
The global drug discount card market is estimated to be valued at US$ 15.5 billion 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:
Increased Access to Affordable Medicines: As mentioned in the heading, increased access to affordable medicines is expected to flourish the drug discount card market over the coming years. Drug discount cards provide savings on the high cost of prescription drugs, thereby increasing accessibility to important medicines. This is a major driver as it ensures more people can seek treatment for illnesses in a cost-effective manner.
Cost Savings for Consumers: By providing average savings of 20% on medication costs, drug discount cards offer substantial cost savings to consumers who may be unemployed, underinsured or have high deductible health plans. This driver is further boosting the market growth as more people are adopting drug discount cards to reduce their healthcare expenditures.
Segment Analysis
The global Drug Discount Card Market is divided into several segments based on cards type, services provided, end user and region. Based on cards type, discount drug card market can be bifurcated into branded drug cards and generic drug cards. Currently, branded drug cards segment holds the major market share owing to high demand for branded drugs. However, generic drug cards segment is expected to witness fastest growth during forecast period due to increasing preference for low cost generic medicines.
PEST Analysis
Political: Government regulations regarding drug pricing and availability of discount programs plays a vital role in market growth. Recent amendments in regulations to make healthcare affordable will boost the market expansion.
Economic: High cost of branded drugs drives individuals towards opting for discount programs. Rising healthcare expenditure and out-of-pocket payments contribute to market value.
Social: Growing geriatric population prone to chronic diseases and need for medications fuel the demand. Increasing health awareness regarding benefits of discount cards supports the social factor.
Technological: Digital platforms providing online registration and instant activation of cards aids convenience. Integration of advanced technologies to streamline distribution and management of cards facilitates market opportunities.
Key Takeaways
The global Drug Discount Card Market is expected to witness high growth during the forecast period of 2023 to 2030. The global drug discount card market is estimated to be valued at US$ 15.5 billion in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023 to 2030.
Regional analysis indicates that North America holds the major market share currently due to presence of key players and rising healthcare costs in the region. Central and South America regions are likely to experience fastest growth over coming years attributed to growing medical tourism and increasing healthcare spending.
Key players operating in the Drug Discount Card Market are RxSaver, RetailMeNot, RxOutreach, Blink Health and WellRx. RxSaver dominates the market owing to robust discount programs provided through extensive network of retail and mail-order pharmacies. RetailMeNot offers diverse portfolio of drug savings cards through partnerships with major pharmacy retailers. WellRx provides additional savings on medications beyond users health insurance coverage through network of 60,000 pharmacies.
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- Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
