50% of the Plan's allowance of the drug?!

Question: 50% of the Plan's allowance of the drug.?
Drug Benefit will pay 50% of the Plan's allowance of the drug. What does that mean.? In plan english!Health Question & Answer

The plan's allowance is the amount of the total that is contracted at the pharmacy as the price of the drug. For example if the plan's allowance is $100 and they charge $150, plans allowance is still just $100. Generally speaking, drug prices don't get cut back unless the pharmacy is gouging. 50% of plan allowance means 50% of the $100 or $50. In nearly all cases plans allowance will equal the charge. So just think of it as half the charge. Only times I ever saw plans allowance have to take a deep cut is in the case of hospital pharmacies that are always overcharging.Health Question & Answer

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