How to Save Money on Prescription Drug Insurance at 70

Turning 70 is a milestone, but it also comes with new financial challenges—especially when it comes to healthcare. Prescription drug costs can take a big bite out of your retirement savings if you’re not careful. Fortunately, there are smart strategies to cut those expenses without sacrificing quality care. Whether you're on Medicare, private insurance, or a combination of both, these tips will help you keep more money in your pocket.

Understanding Your Prescription Drug Coverage

Before you can save, you need to know what you’re working with. At 70, most Americans rely on Medicare Part D or Medicare Advantage plans for prescription coverage. However, policies vary widely in terms of costs, covered medications, and pharmacy networks.

Review Your Current Plan Annually

Insurance plans change every year—formularies (covered drug lists) get updated, premiums shift, and pharmacies in your network may drop out. During Medicare’s Annual Enrollment Period (October 15–December 7), compare your current plan with others. Use Medicare’s Plan Finder Tool to check if a cheaper option covers your medications.

Know the "Donut Hole" (Coverage Gap)

Medicare Part D has a coverage gap where you pay more out-of-pocket after hitting a spending limit ($5,030 in 2024). Once you reach catastrophic coverage, costs drop again. To minimize the impact:
- Ask your doctor about lower-cost alternatives.
- Use manufacturer coupons or patient assistance programs.
- Split higher-dose pills if safe (check with your doctor first).

Smart Ways to Reduce Prescription Costs

Opt for Generic or Biosimilar Drugs

Brand-name drugs can cost 10 times more than generics. If your medication has a generic version, switching could save hundreds per year. Biosimilars (for complex drugs like insulin) are also cheaper and just as effective.

Use Mail-Order Pharmacies

Many insurers offer discounts for 90-day supplies through mail order. This cuts co-pays and eliminates frequent pharmacy trips. Just ensure you won’t need dosage adjustments soon.

Look Into Patient Assistance Programs (PAPs)

Pharmaceutical companies often provide free or discounted drugs to low-income seniors. Nonprofits like NeedyMeds and RxHope help you find eligible programs.

Consider a Medicare Extra Help Program

If your income is limited, you may qualify for Extra Help (Low-Income Subsidy), which lowers Part D premiums, deductibles, and co-pays. Apply through Social Security.

Alternative Strategies Beyond Insurance

Shop Around at Different Pharmacies

Prices vary wildly between pharmacies. Tools like GoodRx or SingleCare show real-time discounts at local stores—sometimes beating insurance prices.

Discuss Deprescribing with Your Doctor

Older adults often take unnecessary medications. A medication review with your doctor could eliminate redundant or risky prescriptions, reducing costs and side effects.

Buy in Bulk (When Safe)

For chronic conditions, a 90-day supply may cost less per pill. Some insurers even waive co-pays for preventive meds like statins when bought in bulk.

Leveraging Health Savings Accounts (HSAs) and Tax Breaks

If you have an HSA from pre-Medicare years, use it to pay for prescriptions tax-free. Even without an HSA, medical expenses exceeding 7.5% of your adjusted gross income may be tax-deductible.

Join a Clinical Trial

Some trials provide free medications and monitoring. Search ClinicalTrials.gov for studies related to your condition.

Avoiding Common Pitfalls

Don’t Skip Medications to Save Money

Cutting pills or skipping doses can worsen health problems, leading to costly hospitalizations. Always consult your doctor before making changes.

Beware of Scams

Fraudsters target seniors with fake "discount drug" offers. Only use reputable pharmacies and verified assistance programs.

Check for State-Specific Programs

Some states offer additional subsidies or drug price caps. For example, New York’s EPIC program helps seniors with Part D costs.

By combining these strategies, you can significantly lower your prescription expenses at 70—leaving more for the things that truly matter in retirement. Stay informed, compare options yearly, and don’t hesitate to ask for help when needed.