Here’s How Bitcoin Fixes Healthcare in America | NiHowdy ????

Hey Bitcoiners,

I wanted to share my thoughts on how Bitcoin can fix healthcare, especially in pharmacy. As a Pharmacist, I've seen firsthand the flaws in the drug industry that drive up costs unnecessarily. Here's why and how Bitcoin can help fix this.

I used to own a community pharmacy and often had customers who paid out of pocket because they lacked insurance. Even my patients with insurance had limited financial means. I felt it was right to offer medications at my cost or for free (if it was de minimus). However, I received notice from an insurance payor about clawing back funds because I provided walk-in customers a better price than the insurance company. I faced the tough decision of either paying this exorbitant clawback or being terminated from the network, which would prevent me from serving other patients.

From that day, I learned that pharmacies must bill retail pricing regardless of the customer. Pharmacies often enter into contracts with insurance companies that include a most favored nation clause, requiring insurance companies to receive the best price possible.

As a legal loophole, pharmacies use “discount cards” to offer discounted prices while complying with insurance payors. Most people don't realize these discount cards collect hefty commissions, up to 80% on the drugs you buy at the pharmacy, paid for by the consumer. Without these discount cards and contractual verbiage, prescriptions would be much cheaper. For instance, GoodRx makes over $500 million a year from this system, and even Mark Cuban’s Cost Plus Drugs uses a similar model. In my opinion, this is one of the largest rent-seeking industries in America. Last year, pharmacies spent over half a billion dollars on commissions, which highlights a huge inefficiency with prescription drugs.

In the 1990s, big retailers like CVS, Walgreens, Walmart, and Target started $4 generic med programs to attract customers, which worked well. Insurance companies got upset about paying $40 for the same meds, leading to the implementation of the most favored nation clause among pharmacies. Since the 90s, the Prescription Discount Card industry has grown as meds get more expensive and insurance covers less. This messed-up system won't change, and government reform is unlikely.

I got Bitcoin back at Rite-Aid!

This led me to create NiHowdy.com We're a prescription savings card that gives the same discounted prices as others but also returns the transaction fees and drug manufacture rebates to you. No one else in the industry does this. We can do it thanks to Bitcoin’s Lightning Network.

1. Micro-transactions: Bitcoin on the Lightning Network allows for high-volume micro-transactions, challenging the high fees from third-party companies. For example, we got a $10 drug for a customer and paid back a 3% rebate in Bitcoin—about 30 cents. You can't do that by mail since postage costs more. Electronic payments like PayPal need at least 30 cents to $1, plus a percentage, making drug rebates impossible. You can’t do shit with fiat.
2. Zero Net Cost Drugs: I’m preaching to the choir here but Bitcoin is an asset. There’s a finite number of Bitcoin, and growing global participation. I believe its value will rise in the future. With delayed gratification, Bitcoin’s value can offset prescription costs. Meanwhile, the U.S. government spends over $400 billion annually on prescription drugs, yet they aren’t free for everyone. Everyone pays into the system, but few benefit. We’ve been running NiHowdy as an MVP since 2022. Some early users have offset their prescription costs by 10% already.

I love Bitcoin. It has the power to change the world. I believe Bitcoin can solve out-of-pocket prescription costs—something our government can’t even solve. This ‘prescription discount card’ industry will sadly never die, but I think Bitcoin makes it more efficient for the end user/consumer.

If you or someone you know pays for prescriptions out of pocket in America, check out NiHowdy. We're releasing our second product, Meowdy, for pet prescriptions soon.

Thanks for reading. If you’re a Bitcoiner in healthcare, I’d love to connect. I often get ridiculed by healthcare providers for even talking about Bitcoin, but it brings me immense joy to find others who share the same enthusiasm. Shout out to my local Bitcoin group for encouraging me to post this on Reddit ????

Cheers!

Here's me testing our product at Costco!