May 27, 2024

Drug Discount Card Market: Redefining Affordability in Healthcare

Drug Discount Card Market

Market Overview:

Drug discount cards provide discounts on prescription drugs to consumers. They help lower out-of-pocket costs for individuals without insurance coverage or with high deductible health plans.

Drug Discount Card Market size was valued at US$ 1,674.2 Million in 2023 and is expected to reach US$ 2,894.4 Million by 2030, growing at a compound annual growth rate (CAGR) of 8.1% from 2023 to 2030.

Market Dynamics:

Rising healthcare costs have propelled demand for affordable medical solutions in recent years. According to the Centers for Medicare and Medicaid Services, national health spending in the U.S. is projected to grow at an annual rate of 5.4% for 2018-2027 and reach nearly 20% of GDP by 2027. Drug discount cards help reduce prescription drug costs and provide much needed relief to consumers. Furthermore, the increasing number of uninsured or underinsured individuals has also stimulated interest in drug discount programs as an affordable option. In 2020, around 27.5 million Americans were estimated to be without health insurance. This has created a sizable customer base for drug discount card providers.

Growing aging population is driving demand for drug discount cards in the Drug Discount Card Market

The aging population has become one of the major drivers for the growth of the drug discount card market. As people grow older, they tend to require more medical care and prescription drugs. The population aged 65 years and above is growing at a faster rate compared to the total population in most developed countries. As per the United Nations, it is estimated that the global population aged 65 years and above will double from 703 million in 2019 to nearly 1.5 billion in 2050. With the rising aging population, the demand and consumption of prescription drugs will increase significantly in the coming years. This coupled with rising healthcare costs has fueled the demand for drug discount cards among the elderly population looking to save money on their prescription expenses.

Increasing prevalence of chronic diseases is contributing to the growth of the drug discount card market

The rising prevalence of chronic diseases such as diabetes, cancer, cardiovascular diseases, and respiratory diseases has become another major driver for the drug discount card market. Chronic diseases are long-lasting health conditions that require ongoing medical attention and drug treatments. As per WHO, chronic diseases are estimated to account for over 70% of all deaths globally. In the US as well, chronic diseases have become the leading causes of death and disability. With the increasing burden of chronic diseases, more people are dependent on prescription drugs for long-term management. This has increased the prescription drug costs. Drug discount cards help these patients to access essential medications at affordable prices, thereby driving the growth of the market.

Rising healthcare costs pose a restrain on the drug discount card market

One of the key restrain for the drug discount card market is the rising overall healthcare costs. In the US, both private and public spending on healthcare has increased substantially over the past couple of decades. Healthcare expenditure as a percentage of GDP has risen from around 11% in 1990 to nearly 18% in 2019 according to CMS. This is exerting upward pressure on the insurance premiums and out-of-pocket costs. The skyrocketing healthcare costs have made insurance plans with high deductibles and premiums more common. While drug discount cards help in lowering prescription costs to some extent, it can become inadequate for covering all drug costs in case of multiple chronic conditions or expensive medications. This has made these cards less attractive when healthcare costs continue to escalate at a fast pace.

Get more insights on this topic:  https://www.coherentmarketinsights.com/industry-reports/drug-discount-card-market 

Partnerships with pharmacies offer an opportunity for growth in the drug discount card market

One of the key opportunities for players in the drug discount card market is to form strategic partnerships with retail pharmacies and pharmacy benefit managers. By integrating their card programs with pharmacy networks, drug discount card providers can reach larger customer base while enhancing the value proposition of their offerings. For example, pharmacies contribute significantly in marketing drug discount cards to their customers. Card issuers too benefit from pharmacies’ established distribution networks for promoting and enrollment of new members. Successful partnerships with pharmacies enable card providers to expand their geographic reach and presence across multiple channels. This allows them to increase sales while pharmacy partners are able to drive more footfall andcriptions filled. Such collaborations offer a significant opportunity for growth in the market.

Increasing focus on specialty drugs will shape the future trends in the drug discount card market

A notable trend in the drug discount card market is the growing emphasis on specialty drugs and services. Specialty drugs which are high-cost biologics and injections for complex conditions such as cancer, rheumatoid arthritis, and multiple sclerosis constitute over 30% of total drug spending in the US. They are often the major cost drivers for both payers and patients. To cater to this rising market segment, drug discount card providers are expanding their offerings to include additional discounts and financial assistance programs for specialty medications. Players are also collaborating with specialty pharmacies to enhance distribution of these specialized therapies. This trend of focusing on specialty drugs is expected to continue and reshape the market as new high-cost specialty treatments emerge in the coming years.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it