Many consumers save hundreds of dollars per year by paying cash for their prescription drugs, rather than using their health insurance coverage. The key is to use discounts available from websites like AmericasPharmacy.com, BlinkHealth.com, GoodRx.com, SingleCare.com, and WellRx.com.

Listen to audio highlights of the story below:

For example, I used a coupon from GoodRx to cut my out-of-pocket cost for a drug from $122 to $12 for a 90-day supply. I had to transfer the prescription to a different nearby pharmacy that would accept the coupon, but that minor inconvenience saved me $440 that year. A similar discount program saved my wife $528 over the course of a year.

What’s the deal? Why do I pay for health insurance but often can get significantly lower prices for medicines by not using it?

“The world of prescription drug prices is very much a black box, so it’s very difficult to say exactly what’s happening,” said Leigh Purvis, a prescription drug policy expert at AARP. “A lot of different things are involved in how insurers set their cost-sharing, and we’re finding that a lot of times you may have a higher copay for your share of the price of that drug than you would if you’d shopped independently.”

Prescription drug prices are a moving target for insurance companies. They typically change their formulary—which drugs are covered and at what copay levels—each autumn just before open enrollment. But changes can happen at any time with little notice.

Your insurance company hires a third-party administrator called a pharmacy benefit manager (PBM) to set its formulary. After negotiating prices with the drug companies, the PBM decides which drugs will cost more, which will cost less, and which won’t be covered at all. These decisions can increase your out-of-pocket costs, as in many cases pharmaceutical companies pay the PBM to favor (and boost sales of) some of their drugs in that formulary by putting them in a lower-priced tier (smaller copay for the consumer).

“It’s legal, even though consumers will not see the benefit of these so-called ‘rebate’ payments,” said Lisa Gill, investigative reporter for health and medicine at Consumer Reports. “As this money moves between drug companies and pharmacy benefit managers, what bubbles forth is a formulary that can be very irrational to the consumer. It’s not transparent, and you only feel the pain of this price system as you go to fill the prescription.”

That explains why you might have a $20 copay on a cheap generic drug that would cost you $10 if you paid without using insurance.

“And that scenario can happen because there’s a competing drug—a branded version or extended-release version—that the PBM would rather you take, as opposed to the cheap generic,” Gill said. “Intuitively, that doesn’t make sense to you, but it makes economic sense to the PBM that’s getting rebate money to favor that higher-priced drug.”

How Online Discount Coupons Work

To compare discounts offered by coupon sites, visit the program’s website. Enter your location, name of the drug, dosage, and quantity; then a list of nearby pharmacies accepting the coupon will pop up, along with each store’s price. Sometimes you’ll also see prices for mail order.

For example, when I searched SingleCare.com for a 30-day supply of Atorvastatin Calcium 40 mg tablets, it quoted coupon prices at nearby drugstores and online retailers ranging from $8.33 to $24.87.

To get the discount, you usually print the coupon, or text or email it to yourself, and take it to the store. With some programs, you sign up for a free membership and then provide that info to the drugstore at checkout.

The coupon companies make money from commissions from pharmacies that get their referrals.

These coupons can be a lifesaver for those without health insurance. Some discount sites also have coupons for over-the-counter (non-prescription) medications.

Also, consider online coupons for your pet’s prescriptions if there’s a human equivalent medication and dosage available for its condition. Talk to your vet.

Check for Savings

Consumer Reports recommends checking at least one coupon site every time you fill a prescription.

“You might very well be surprised,” said Consumer Reports’ Gill. “These companies offer hundreds, if not thousands, of coupons and discounts, particularly on generic drugs.”

No matter where you shop, Consumer Reports recommends asking your pharmacist for the lowest price for a given drug, and whether it’s cheaper if you don’t use insurance. This includes independent, mom-and-pop pharmacies, which may negotiate lower prices for you since they have greater leeway over what they can charge.

“That was unthinkable 10 years ago,” Gill said, “but it’s become important now that insurance companies are covering less and less.”

Check Privacy Policies

Before you use one of these apps or websites, check its privacy policy to make sure you’re comfortable with the type of data collected and how it’s used. The amount of information collected (and sold to other companies) varies from site to site. When you utilize these websites, your private health data is NOT protected by HIPAA [the Health Insurance Portability and Accountability Act]. GoodRx and a few of the other sites state they won’t sell or share info about your prescriptions, but most of these services will sell your name, email address, age, location, and other information to other companies.

Some coupon sites (e.g., GoodRx) let you print coupons or use their apps without supplying any personal info. Others (e.g., WellRx) require that you provide your full name, email address, date of birth, and Zip code to use their discount programs.

Consider This

If you take advantage of these website coupons and forgo using your health insurance (whether private or Medicare) to buy a given drug, that purchase will not count toward your annual deductible.

If you anticipate that you won’t meet your deductible for the year, coupons can be a good choice. If you do expect to meet it, consider using insurance and paying the higher price. Note: Medicare’s annual out-of-pocket limit is significantly lower—for 2025, it’s just $2,000.

Also, consider safety. Pharmacies have safeguards in place to help prevent harmful drug interactions. If you shop around and use coupons, be sure your doctor and your primary pharmacy have a list of all the drugs you take.

Other Ways to Save

Order online. To encourage online shopping, insurance companies typically have better drug prices online.

Buy in bulk. If you’ll be taking a drug for more than three months, ask your doctor if you can get a prescription for a 90-day supply. You’ll probably pay significantly less per dose than with a 30-day refill.

Shop around. Don’t assume every pharmacy has the same prices for the same drugs. In a 2018 study, Consumer Reports found “remarkable” price differences when shopping a market basket of five popular generic drugs. Total price for all five drugs ranged from $66 to $928 for a one-month supply.

Ask for free samples. If you’re prescribed a new drug during an in-person visit, ask the doctor for a free sample.

Some pharmacies offer free drugs. Some supermarket chains offer certain low-cost generic medications for free.

Shop warehouse stores. You can find low prices at Costco and Sam’s Club—and you don’t need to be a member to shop at their pharmacies (although members might get special discounts).

Look at patient assistance programs. Some pharmaceutical companies have programs to help lower prescription drug prices. Check the industry’s PhRMA’s Medicine Assistance Tool, or visit Medicare.gov if you’re enrolled in Medicare prescription drug coverage (Part D). The nonprofit NeedyMeds.org can help you find discount programs offered by drug manufacturers.

Visit a charitable clinic: There are about 1,400 non-profit U.S. clinics and pharmacies providing low-cost or free medical care, including drugs, for those in need. (You may have to provide details about income or insurance status.) Check with the National Association of Free & Charitable Clinics to find a nearby clinic.

More from Checkbook

• Why Do Americans Pay More for Prescription Drugs?