GoodRx brings discounts on prescription drugs at your fingertip through a mobile app, even if you don’t have an expensive health insurance plan.
You don’t have health insurance at all?
No problem. You can use it regardless.
The best part is that using their platform does not cost you a dime. Wondering who pays them? Let’s explore how GoodRx makes money.
What is GoodRx?
GoodRX is a digital platform with a mobile app that gives users access to prescription drug discounts. With over 20 million monthly active users, it is one of the most downloaded medical apps.
The company was founded in 2011 and is based in Santa Monica, California. GoodRX offers users discounts on prescription drugs by providing coupons, deals, and other savings opportunities.
It provides consumers free access to all the pharmacy deals with no membership fees. The platform claims to save users up to 80% on brand medications.
How Does GoodRx Work?
GoodRX offers a free GoodRx Discount Card, accepted at over 70,000 pharmacies and drugstores nationwide. Once signed up, the user can get instant discounts at pharmacies. Whether you have affordable healthcare or an employee-offered plan, all can use these cards. The
The user can search for a specific drug through the GoodRx website or mobile app to find deals and discounts and compare drug prices. It acts as a price comparison tool that allows consumers to find local pharmacies with prescription drug prices to compare and generate coupons. From here, the user can print and present a GoodRx coupon or show them in the mobile app at the drug store to get discounted prices.
How Does GoodRX Make Money?
Referral fees are GoodRx’s primary source of income. GoodRx receives referral fees every time a user fills a prescription with its coupon. This fee is typically around 10-30% of the total cost of the prescription.
The referral fee system is a common business model used by many companies in the healthcare industry, including pharmacy benefits managers and prescription discount card companies. The referral fees do not impact users’ prices for their medications.
Advertisement and partnership
GoodRx revenue also comes through advertising and partnerships with various pharmaceutical manufacturers. GoodRx partners with pharmacies and Pharmacy benefit managers (PBMs) to provide them with access to the GoodRx platform and tools.
Pharmacies and Pharmacy Benefit Manager pay GoodRx a fee to be listed on the platform and to participate in GoodRx’s programs, such as the Prescription Savings Club. The pharmaceutical manufacturers also place ads on the Goodrx platform to promote their drugs. These promotions may include sponsored listings or advertisements at the top of the search results for specific drugs.
Profit from prescription drug data
GoodRx collects and analyzes data on prescription drug prices and discounts from pharmacies across the United States. This data is beneficial for understanding drug prices and prescription patterns.GoodRx generates revenue by selling prescription transactions data to businesses that need them for research. Pharmaceutical companies use these data to formulate marketing strategies and pricing decisions and create business models.
Subscription revenue stream
GoodRx offers a subscription service called GoodRx Gold that provides additional savings on prescription drugs for a monthly fee. GoodRx Gold service generates revenue for GoodRx by charging users a fee to access these additional discounts.The GoodRx Gold membership fee is only $5.99 for individuals and $9.99 for families. GoodRx Gold unlocks deeper discounts than the common platform. The discounts are better than those provided by health insurance companies. GoodRx negotiates directly with pharmacies to secure these discounts for GoodRx Gold members.
Partnership with Insurance Providers
GoodRx has partnered with some health insurers to offer drug discounts to their policyholders. While insurance companies typically negotiate their own drug prices with pharmacies, GoodRx may receive a commission or other compensation for facilitating these partnerships.
Revenue stream through Telemedicine
GoodRx makes money by partnering with online telemedicine providers to provide a GoodRx telehealth marketplace. These services allow users to consult a doctor remotely and receive electronic prescriptions without leaving their homes. GoodRx generates revenue by taking a percentage of the fees charged by these telemedicine providers.GoodRx acquired HeyDoctor, an online telemedicine provider that offers virtual consultations with licensed healthcare providers. Users can schedule appointments through the HeyDoctor website or app and receive prescriptions for various health conditions, including cold and flu, allergies, and skin conditions.This partnership allows GoodRx to expand its offerings beyond prescription drugs and provide users with more comprehensive healthcare services. It also enables GoodRx to generate additional revenue through its commission on telemedicine services.
GoodRx marketplace for supplies
GoodRx has also launched a marketplace for medical supplies and equipment. While prescription drugs are the company’s primary focus, it has expanded its offerings to include blood glucose monitors, nebulizers, and first aid kits. GoodRx makes money by taking a percentage of the sales made through this marketplace.
GoodRX is a great way to save money on prescription drugs. Although referral fee is its primary business model, GoodRx revenue comes in many forms. It earns commissions from retail pharmacies, telemedicine providers, and pharmaceutical manufacturers.
GoodRx’s business model does not affect consumer savings or charges commission for facilitating service. The GoodRx coupon prescription offered on the website is available to all.
If you’re looking for a way to save money on prescription drugs, GoodRX is worth considering. When you’re ready to save money on prescription drugs, just sign up for the free GoodRX Discount Card today and start saving!