Perscription Drug Expense Insurance
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What is prescription drug expense insurance?
Why do I need prescription drug expense insurance if I already have major medical coverage?

What is prescription drug expense insurance?

This type of specialized medical insurance provides coverage for the cost of prescription drugs, with little or no out-of-pocket cost to the consumer. Prescription drug expense plans usually establish streamlined claims processing procedures, often providing direct payment to participating pharmacies, in order to efficiently administer an expected large volume of small claims. These plans often require insureds to incur a nominal copayment, applied at the time of purchase and paid directly to the pharmacist.

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Why do I need prescription drug expense insurance if I already have major medical coverage?

Prescription drug expense insurance is offered in the marketplace as a supplemental policy, separate and apart from any major medical insurance covering the individual. Although most major medical plans cover prescription drug expense, the benefits are usually subject to a per-person deductible ($100, $250, $500 or higher) and to a coinsurance percentage of 20 or 30 percent. Thus, insureds may wish to consider the purchase of prescription drug expense insurance to supplement the coverage of prescription drug expense under their primary medical expense plan.

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