Baby Boomer Finance – Drug Co-Pays

Welcome to this weeks edition of Baby Boomer Finance – Drug Co-Pays

Show Notes:

 Drug Co-pays under a 4 or 5 Tier Program.

The cost of drugs is increasing at an alarming rate.  Health insurance was started to spread the cost of paying for the sick.  Today however with the increasing premiums for health insurance, the government and private companies are looking for ways to reduce the cost of health care coverage.  One way this is being done is the classify drugs into 4 or 5 tiers.  The most costly drugs are in tier 4 and 5.  The co-pay for these tiers is usually a percentage of the cost of the drug and not a fixed price.

These tier 4 and 5 co- pays can be up to 33% of the cost for the prescriptions or higher.  For example before the tier 4 and 5 classification of copaxone (multiple sclerosis drug) the co-pay could have be $20 for a 30 day supply.  But with a co-pay of 25% the same 30 day supply cost $325.

So under this plan, the sick patients with high costing drugs will pay more, a lot more.  Some may not be able to afford it.  As the cost could be more then their income.  So many may do without the drugs.