As Americans spend more than $500 billion on prescription drugs each year, the issue of affordability is one that’s become increasingly relevant. That’s why GoodRx has become the premier prescription savings platform in America.
Unlike other drug discount cards, GoodRx works with pharmacy benefits managers (PBMs), which negotiate discounted prescription prices directly with pharmacies.
What is GoodRx?
GoodRx is a free price comparison platform that offers consumers access to negotiated pricing for prescriptions, medical consultations, and lab tests. It also provides telehealth offerings and other healthcare and wellness-related content.
The company’s business model is a win-win for both the consumer and the healthcare industry. The platform empowers patients by providing them with affordable solutions and encourages medication adherence through an online community.
The company earns revenue by leveraging its reach and trust among its users, which allows it to promote the products of pharmaceutical companies on its site. Moreover, it enables healthcare professionals to suggest discount codes for their patients on its platform.
How Does GoodRx Work?
GoodRx helps you save on prescription drugs by providing price transparency and a platform that compares over 230 billion pricing points across all of America’s pharmacies. Consumers can use a GoodRx discount code to access the lowest price available at their nearest pharmacy, which is typically 70 percent lower than the list price on the drug’s label.
The platform also offers a number of other health and wellness services. These include COVID-19 testing, general health screenings, and telehealth offerings through HeyDoctor.
Hirsch’s vision for GoodRx began to take shape after he noticed that many of his friends and colleagues could afford medications with insurance, but were being charged sky-high prices at their local pharmacies without it. That was because of the way the prescription drug system is structured, with a variety of middlemen who negotiate prices for insurers and manufacturers.
These middlemen are known as pharmacy benefit managers (PBMs). The companies have evolved into powerful and lucrative intermediaries that play a crucial role in America’s pharmaceutical marketplace.
How Does GoodRx Save You Money?
GoodRx is a pharmacy price comparison and discount coupon service that helps you save money on prescription drugs without using insurance. Its website and app let you search for a specific medication, compare prices at nearby pharmacies, and then print a coupon to take with you to the store.
Its monetization model involves partnerships with pharmacy benefit managers (PBMs). When consumers use GoodRx coupons to pay for prescription drugs, the PBM with the lowest contracted price at the pharmacy processes the claim and collects the fee.
According to GoodRx, this enables it to offer discounts at a lower cost than the average U&C list price for the same drug. The PBM with that contract price also gets paid a referral fee for each transaction, which accounts for 90% of the company’s revenues.
The company says it has a “constant data refresh” and uses artificial intelligence and machine learning to create a “living database.” That’s one reason why it’s the premier prescription savings platform.
How Does GoodRx Make Money?
GoodRx has multiple revenue streams: membership fees, advertising from pharmaceutical manufacturers, and subscription offerings. The platform also has a telehealth offering, which can help customers get instant healthcare consultations.
In 2021, GoodRx made $745 Mn from these three revenue streams. Most of its revenues come from prescription transactions.
When consumers use a GoodRx coupon at their pharmacy, the drugstore pays a fee to a Pharmacy Benefit Manager (PBM), who splits it with GoodRx.
That income keeps the company afloat and enables it to offer additional services such as Telehealth.
The company’s business model is designed to make money and improve the lives of American consumers. This means reducing medication costs and improving overall health outcomes.
Americans are increasingly struggling to afford their medications and other basic necessities. The savings that GoodRx produces help families, especially those who need it most, afford these expenses. It also helps people stay on their medication, which can improve their health.
