GoodRx Holdings, Inc. (NASDAQ: GDRX) saw its stock soar 8.18% in pre-market trading on Thursday, following the release of a study by GoodRx Research highlighting the limitations of Medicare drug coverage compared to employer-sponsored plans. The study's findings underscore the potential value of GoodRx's services in helping retirees navigate the complexities of medication costs.
According to the GoodRx Research study, the average Medicare plan excludes 44% of medications, compared to only 21% exclusion in the average commercial insurance plan. Additionally, nearly half of the drugs covered by Medicare plans are subject to restrictions such as prior authorization or step therapy. These findings suggest a significant market opportunity for GoodRx's prescription discount services among the growing population of Medicare-eligible retirees.
The study's revelations come at a time when approximately 11,000 baby boomers are turning 65 each day, potentially driving increased demand for GoodRx's services. As retirees face more limited drug coverage and higher out-of-pocket costs under Medicare, GoodRx's platform could become an increasingly valuable tool for finding affordable medication options. Investors appear to be reacting positively to this potential growth catalyst, as reflected in the stock's pre-market surge.
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