eli5: How does GoodRX (or any prescription savings group) work?


How does just mentioning GoodRX drop my prescriptions price from $200 to $20 without insurance? Thanks!

In: 28


Same way AARP gets discounts for its members, Insurance companies pay less than self-pay, and Unions get better wages: collective bargaining.

Say GoodRx wants to offer a discount on aspirin. They go to Bayer and say “hey, we represent a million customers. If we can promise that 500,000 of them will buy Bayer aspirin instead of store brand generic, will you give us a discount?” Bayer thinks for a minute and replies “our analytics team has found that only 33% of consumers will spend more for our brand vs generic. If you can guarantee 20% increase, we’ll give you 15% off.” (Or whatever the real numbers are, I made those percentages up for demonstration purposes.)

GoodRx is essentially selling customer loyalty to pharmaceutical companies. Guaranteed, albeit reduced, returns vs the uncertainty of typical marketing.

Because it’s a discount. If they just priced drugs low they couldn’t charge medicare and insurance as much. If they keep prices high but give out coupons they make more money from big payers and still some from small.

[costplusdrugs.com](https://costplusdrugs.com) is where it’s at though.

-a satisfied customer who still thinks it’s too good to be true

I touched a bit on how it works here but the comments probably buried it:


Also realize, GoodRx is monetizing your info, there is no data security or privacy involved.