How to Compare Companies With Pharmaceutical Coverage

When looking for a new health insurance plan, you need to evaluate prescription drug coverage. How do you choose the best company for your prescription needs? Compare their general coverage, copays and types of medications covered before you make your choice.

General Coverage

• Before you select a health insurance plan, be sure to find out whether it has prescription drug coverage at all. Some companies offer health plans that have lower premiums and co-pays because they do not offer any prescription drug coverage. If a plan sounds too good to be true, be sure it will cover your pharmaceutical needs. Read the fine print!

Co-pays

• Your co-pay for prescription drugs will vary by health insurance company and by plan. Select a plan that has an affordable co-pay that fits into your budget.

Formulary

• Be sure that your health insurance company and plan will cover the type of drug that you need. If you take a medication regularly, ask if it is on the plan's formulary. A formulary is a list of all covered prescription drugs.

Brand name versus Generic

• Be sure to check whether your plan covers brand names only, or if it also covers generic prescription drugs. Generic drugs are often less expensive than brand-name ones. If you know that you need one or the other, make sure that your plan covers it. The co-pay for a brand-name drug may be different than that for its generic equivalent, so be sure that you can afford the drug you need.