That Drug Coupon Isn’t Really Clipping Costs

When Valeant Pharmaceuticals International ran a TV ad after this year’s Emmy Awards broadcast featuring actor Mario Lopez promoting its new antifungal toe treatment, Jublia, the spot drew some barbs. But it’s also lured plenty of curious consumers who heeded the company’s invitation to visit the drug’s website for savings. There they found an online coupon that promised no out-of-pocket costs for eligible patients. That’s a great deal for consumers, because the prescription medicine costs more than $1,000 for an 8-milliliter bottle. It’s an offer many of their insurers would prefer to refuse.

Jublia’s marketing tack is part of a high-stakes game of chicken in which insurance companies raise copays on some drugs to as high as $100 to discourage their use, only to see pharmaceutical companies pick up the tab for those copays—seeking to leave insurers on the hook for the balance, often in the hundreds and sometimes thousands of dollars per monthly prescription.