The GoodRx Effect: Delivering a Transformative Impact on the U.S. Healthcare System through Prescription Savings

Rhea-AI Summary

GoodRx (NASDAQ: GDRX) has saved Americans $65 billion and the healthcare system over $5 billion by improving medication access and adherence, positively impacting health outcomes and significantly reducing costs within the healthcare system. The company has saved consumers more than $65 billion on brand-name and generic prescription medications, with users saving an average of 82% on retail prices for prescription medications in the last year.

Insights

Health Economist

The report on GoodRx's economic impact within the healthcare sector sheds light on the substantial cost savings achieved for both consumers and the healthcare system. From a health economics perspective, the purported $65 billion in consumer savings and $5 billion in healthcare system savings underscore the potential of technology-driven solutions to address inefficiencies in drug pricing and distribution. By increasing medication adherence through reduced costs, GoodRx may indirectly contribute to better health outcomes and lower long-term healthcare expenditures. However, it is crucial to assess these figures in the context of overall healthcare spending and to consider the sustainability of such savings. Additionally, the role of GoodRx in the broader pharmaceutical pricing ecosystem warrants scrutiny, particularly regarding how its discounts interact with insurance plans and pharmacy benefit managers.

Pharmaceutical Market Analyst

Analyzing the pharmaceutical landscape, the impact of GoodRx becomes particularly noteworthy against the backdrop of rising drug prices and the growing number of underinsured Americans. The reported average savings of 82% on retail prices reflect not only the potential market distortions in drug pricing but also the power of competitive market solutions to alleviate some of the financial burdens faced by consumers. The claim of improved medication adherence due to cost savings could imply a shift in consumer behavior, potentially influencing market demand for certain drugs. Pharmaceutical companies might need to adjust their pricing strategies accordingly, considering the increasing prevalence of discount platforms like GoodRx. The long-term effects on drug manufacturers' pricing power and revenue streams are aspects that merit close monitoring.

Public Health Expert

From a public health perspective, the correlation between medication affordability, access and adherence is well-established. GoodRx's reported contribution to improving medication adherence by reducing costs can have significant implications for population health management. Enhanced adherence generally leads to better disease management, which can decrease the need for more expensive healthcare interventions. However, it is essential to critically evaluate the quality of data supporting these claims and to consider the potential limitations of such reports. For instance, while GoodRx may increase access, it does not address the underlying issue of high drug prices at the source. Moreover, the impact on vulnerable populations, particularly those without internet access or those who may not be aware of such savings programs, remains an area for further exploration.

New report reveals that by improving medication access and adherence, GoodRx has helped save Americans $65 billion and the healthcare system over $5 billion

SANTA MONICA, Calif.--(BUSINESS WIRE)-- GoodRx (NASDAQ: GDRX), the leading destination for prescription savings, today shared a report looking at the company’s impact on social welfare as a result of helping millions of people access affordable medications. “The GoodRx Effect: How GoodRx is Changing the Economics of Healthcare” shows that by saving people money and improving medication adherence, GoodRx positively impacts health outcomes and significantly reduces costs within the healthcare system – including saving the healthcare system an estimated $5 billion to date.

Since “The GoodRx Effect” was first published in 2021, the healthcare industry has faced numerous challenges and changes that have impacted the availability and accessibility of prescription medications, like the end of the COVID-19 public health emergency and the unwinding of Medicaid. With 43 percent of working-age American adults inadequately insured in 2022 – 9 percent lacking insurance altogether – people urgently need the tools and resources to help reduce high healthcare costs. That is why GoodRx is building a bridge to healthcare for its users by making it more efficient, easier to use, and easier to understand.

To date, GoodRx has saved consumers more than $65 billion on brand-name and generic prescription medications – and that number is growing every day. The importance of these savings becomes clear when examining the company’s ripple effect:

Significant savings that improve adherence

• GoodRx users saved an average of 82% on retail prices for prescription medications in the last year, which helped about 10 million users save over $200 off retail prices for their prescriptions.

• Since its inception, we estimate that GoodRx has helped consumers fill at least 184 million prescriptions that they otherwise may not have been able to afford. This is an over 135% increase in newly adherent prescriptions since 2021.

Beats the cost of an insurance copay 50% of the time for the most commonly prescribed medications

• In the last year, approximately 50% of the 100 most purchased prescriptions filled using GoodRx were cheaper than the average commercial insurance stated copays, based on industry data. When GoodRx users paid less than the average commercial insurance copay for these most commonly purchased medications, they saved an average of about 50%.

• Last year, GoodRx users on average paid less than the average Medicare copay 8% of the time for the 100 most purchased prescriptions during the initial coverage phase, with average savings of 24% off the average Medicare initial coverage copay.

Improved health outcomes that reduce the strain on the healthcare system

• GoodRx estimates that by preventing more than 927,000 emergency room visits and hospitalizations, it has helped save the healthcare system more than $5 billion since 2012. This translates to at least $145 million in out-of-pocket savings for GoodRx users.

• Since 2012, GoodRx has directly contributed to the prevention of at least 590,000 emergency room visits and 336,000 hospitalizations for COPD, depression, diabetes, and major adverse cardiovascular events like heart attack and stroke.

Freeing up funds for basic necessities that enhance well-being

• For the 200 most-filled medications in the U.S., the average GoodRx user saves about $72 per prescription when averaging the estimated savings for users who would have paid cash and users who would have paid commercial insurance copays. These savings can be put towards things like nutrition, housing, and education.

“The GoodRx Effect is a reminder that by focusing on one of the most foundational challenges in healthcare - access to affordable medications - we are helping create much-needed change within the healthcare system at large,” said Doug Hirsch, co-founder and Chief Mission Officer of GoodRx. “We’ve increased our impact exponentially in just two years, and I look forward to the continued momentum as we roll out new programs and ways for users to save on their medications in the years ahead.”

From improving health outcomes to reducing strain on the healthcare system, the GoodRx Effect extends well beyond users’ wallets. By arming people with the ability to price shop and save on their medications, GoodRx helps people take more control over their health.

View the full GoodRx Effect white paper to learn more.

About GoodRx

GoodRx is the leading destination for prescription savings. We offer consumers free access to transparent and lower prices for generic and brand medications, as well as comprehensive healthcare research and information. We also equip healthcare providers with efficient ways to find and prescribe affordable medications. Since 2011, GoodRx has helped consumers save more than $65 billion and is one of the most downloaded medical apps over the past decade.

GoodRx periodically posts information that may be important to investors on its investor relations website at https://investors.goodrx.com. We intend to use our website as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors and potential investors are encouraged to consult GoodRx’s website regularly for important information, in addition to following GoodRx’s press releases, filings with the Securities and Exchange Commission (the “SEC”) and public conference calls and webcasts. The information contained on, or that may be accessed through, GoodRx’s website is not incorporated by reference into, and is not a part of, this press release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding consumer savings; the benefits of our offerings to consumers, the U.S. healthcare system and GoodRx; and GoodRx’s plans, expectations and objectives. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, risks relating to our ability to achieve broad market education and change consumer purchasing habits, changes in medication pricing and pricing structures, our reliance on a limited number of industry participants, the competitive nature of our industry, risks related to government regulation of the internet, e-commerce, consumer data and privacy, information technology and cyber-security and the important factors discussed in the section entitled “Risk Factors” in GoodRx’s Annual Report on Form 10-K for the year ended December 31, 2022, as updated by our Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, and our other filings with the Securities and Exchange Commission. These factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240111005502/en/

Lauren Casparis

press@goodrx.com

Source: GoodRx

FAQ

How much money has GoodRx saved Americans?

GoodRx has saved Americans $65 billion and the healthcare system over $5 billion by improving medication access and adherence.

What impact has GoodRx had on social welfare?

GoodRx has positively impacted health outcomes and significantly reduced costs within the healthcare system by improving medication access and adherence.

What is the average savings for GoodRx users on prescription medications?

GoodRx users have saved an average of 82% on retail prices for prescription medications in the last year.