Drug discount cards end up costing insurers more compared to generics 

Pharmaceutical companies often offer drug discount cards to help defray out-of-pocket costs for patients' prescription drugs, but a new study out of Canada finds that such discounts end up costing private insurers. Looking at nearly 3 million prescriptions for 89 different medications, researchers found that discount cards cost private insurance companies 46% more in health care costs compared to similar generic prescriptions. At the same time, spending by public insurance — which Canada offers to all its citizens — was only 1.3% higher than for generic drugs, and patients saved about 7% per brand name, or CAD $3.49, per prescription by using the discount cards. In order to save costs, private insurance plans should perhaps be more forceful about substituting for generics when available, the authors suggest.