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Drug discount cards allow individuals to purchase prescription medications at reduced prices by gaining access to discounted pricing negotiated by card sponsors with pharmacies or pharmaceutical firms. These cards have grown in popularity in recent years as a means for individuals to reduce medication costs, especially those without health insurance plans that provide prescription benefits. These cards do not require eligibility or enrollment and can help cut costs significantly on prescriptions. Drug discount cards are of particular help for individuals purchasing generic prescriptions as well as branded medications that are not covered under insurance plans.
The global drug discount card market is estimated to be valued at US$ 13.2 billion in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the drug discount card market is the steady rise in healthcare costs over time. Prescription drug costs, in particular, have risen much faster than general inflation rates in many countries. This has made medications unaffordable for some without insurance or facing high deductibles and co-payments. Drug discount cards help bridge this affordability gap by offering discounted prices on medications. They provide an affordable method for individuals to access needed drug therapies and help control overall out-of-pocket spending on prescriptions. As healthcare costs continue rising worldwide, demand for innovative solutions like drug discount cards to cut prescription expenses is expected to remain high over the coming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in the drug discount card market. Establishing operations and gaining approval from insurance providers requires significant investments, creating barriers.
Bargaining power of buyers: The bargaining power of buyers is high. There are many discounts card providers in the market giving buyers options to choose from based on coverage and cost.
Bargaining power of suppliers: The bargaining power of suppliers like pharmaceutical companies is high given their strong brand presence and necessity of drugs.
Threat of new substitutes: The threat of substitutes is low as drug discount cards serve a niche need for affordable medicines.
Competitive rivalry: The competitive rivalry is fierce with companies offering varied coverage and pricing to attract more customers.
Key Takeaways
The global drug discount card market is expected to witness high growth. The global drug discount card market is estimated to be valued at US$ 13.2 billion in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023 to 2030.
Regional analysis comprises North America dominates the market currently due to rising healthcare costs and awareness. Europe and Asia Pacific are fast growing regions.
Key players operating in the drug discount card market are RxSaver, RxOutlet, Blink Health, and WellRx. They provide discounts on prescription drugs at pharmacies nationwide. RxSaver partners with over 60,000 pharmacies offering up to 80% discounts on many medicines.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
