Price and Effectiveness: Nasonex vs Nasacort Or Flonase

My wife gets seasonal allergy in the spring. Her doctor prescribed a nasal spray Mometasone (brand name Nasonex) last year. She asked for a refill. The doctor’s office sent the refill prescription electronically to the pharmacy.

How much will it cost? Our insurance plan shows the drug is covered, and it’s on the preferred list. It will be $239 for one bottle from a retail pharmacy or $641 for three bottles by mail order.

Before we meet the deductible on our high deductible health plan, we will be paying 100% of this price.

Because it’s still a brand-name drug with no generic, if we don’t go through insurance, the discount program GoodRx doesn’t give much of a discount either.

Meanwhile, similar drugs Nasacort and Flonase went OTC in recent years. Their prices are much lower.  Nasacort is $18 for one bottle at Amazon, $35 for a 3-pack at Costco. Flonase is $21 for one bottle at Amazon, $54 for a 3-pack at Costco.

Hmm, under $20 for OTC versus over $200 for prescription, is the prescription drug Nasonex that much better? I asked my wife if she wanted to send a message to her doctor and ask if the OTC drugs would be just as effective. She said she’d be a fool if she didn’t try the OTC drugs first. Whatever works the best will be the one she will use regardless the price.

This is another example of how a high deductible health plan helps lower the cost for everyone. If we only had to pay a $25 copay under a PPO plan, we wouldn’t have considered the lower cost OTC drugs. We would actually feel good about having it covered by insurance. However, mindlessly paying the higher cost through insurance would unnecessarily raise the cost for everyone, including eventually ourselves through higher premiums.

Price and effectiveness aren’t necessarily directly related. Considering that the two OTC drugs were prescription drugs only a few years ago, we fully expect them to work just as well at 1/10th the cost. Stop the mindless spending on health care.

See All Your Accounts In One Place

Track your net worth, asset allocation, and portfolio performance with free financial tools from Personal Capital.

Comments

  1. abc says

    Two questions come to mind. First, does the doctor get a kickback from the drug company? Second, why doesn’t the doctor just give the nonprescription alternatives to the patient?

    • Harry Sit says

      At the time the doctor gave the prescription, the other two drugs already went OTC. The doctor did not say “if your co-pay is high get these OTC drugs.” It could be just operating under the old habit of never considering the price because the co-pay masks any price difference. As more and more people get on high deductible plans, doctors need to get up to speed on considering both price and effectiveness when prescribing.

      We often blast financial salesmen/women for steering people to expensive investments. We should also expose doctors for prescribing expensive treatment if they get a kickback in doing so.

  2. financeBuffReader says

    The scenario described in the post is both a pro and a con. Yes, consumers will be more exposed to the high costs of care and may take actions to mitigate the cost, putting downward market pressure on medical costs. On the other hand, consumers will be rationing their health to save money. That could lead to devastating health consequences for the consumer if they choose poorly.

    • brooklynjon says

      Doctor here. There is no kickback, certainly not anymore. We generally have no idea how expensive the drugs we prescribe are, partly for ethical reasons, and partly because there are so many variables that go into how much a particular medication costs a particular patient at a particular pharmacy, there’s no way to keep it all straight. That being said, pharmaceutical companies use marketing strategies on us, and the beauty of marketing is that it works on people who are unaware that they are being marketed to.

  3. Wahine says

    Harry,
    I suggest she try the generic prescription Flonase (Fluticasone Propionate). Where I live, it is less expensive than the OTC Flonase if I use LowestMed.com. After trying both, I find that I like the sprayer on the generic bottle better and it seems to work just as well.

    I love your newsletters. I found your site in a search for how to do the darn backdoor IRA in TurboTax and I’ve been a faithful reader ever since. 🙂 Keep up the good work!

  4. vi says

    Harry,
    enjoy your columns.
    This happens a lot. ran into this with Doryx (acne medication) for son . insurance company will only cover for generics or older formulations of the drug. So pharma companies game it by offering coupons to slightly different variations e.g. extended release. Dermatologist has to approve you for coupon which will whack off 100s of dollars from price. These dermatologists seem to be very popular and you can locate them by word of mouth or internet searches.

    • vi says

      wanted to complete editing my previous comment.
      the gaming comes in because the pre-discount price is applied to deductible. so after 3 refills your deductible is up and you only pay the copay price but insurance company is forced to pay for the highly inflated brand name price since that is what the dermatologist prescribed. So I am sure dermatologists benefit in some form.

    • Harry Sit says

      I would refuse to aid and abet in this scheme on principle. It feels like insurance fraud — claiming a higher loss than the actual cost. I heard it’s illegal to give coupons to Medicare patients. It should be made illegal for private insurance as well.

    • $iddhartha says

      Epipen is another drug that costs hundreds of dollars and preys on parents who have no choice but to pay whatever is asked. They generally have a coupon to knock of $100 dollars as well. If you don’t have a High Deductible plan, they may give you a reasonable copay of say $50, $100, or so.

      My understanding is that EpiPen is much cheaper in countries like Canada. Also, they expire within a year and parents are asked to buy multiple boxes (one for home, one for school, etc.). So essentially following this advice, we as parents are expected to allocate well over $1000 annually because we have a kid with a severe allergy.

  5. Sankar Ganesan says

    Here is my recommendation. Usually, I suffer a lot due to allergies during this time. This year I am trying out Neilmed Sinus Rinse Allergy And Sinus Regular Premixed Sachets which is about $15 in Amazon and a lot cheaper at Costco for a 2 pack one. Natural and no side effects. I did not have any issue this year though living in Texas. I would recommend this to everybody.

    • Nick says

      Second that.
      I have used the nasal rinse therapy/method for a few years now and it has worked for me. Used to have terrible allergy issues and suffered every spring and fall for weeks at a time. However, this nasal rinse method works for me only if my nose is not already clogged up and I do the rinse on a daily basis. I missed out on doing that for a few weeks when on travel and now Im all clogged up and chemical warfare (mucinex, zyrtec, claritin, flonase.. whatever) is the only way out for some relief despite the fact that all the remedies have some sort of undesirable side effect. Once my nasal passages are clear, back to nasal rinse again.

Leave a Reply

Your email address will not be published. Required fields are marked *