Doug Hirsch, co-founder as well as co-CEO of digital pharmacy GoodRx, can be on a mission to save people via health care-induced bankruptcy, he told CNBC’s Jim Cramer in San Francisco on Wednesday.
The average deductible costs more than $1,500, leaving the average American in a bind, Hirsch said. In particular, the majority of millennials don’t have enough money saved to cover a $1,000 emergency.
“which means most Americans would certainly literally go bankrupt before they can actually afford to get coverage via their insurance,” Hirsch said in a one-on-one with the “Mad Money” host.
GoodRx, No. 6 on This particular year’s CNBC Disruptor 50 list, leverages technology to help find as well as compare prescription drug prices. When he launched the company in 2011, Hirsch said he wanted to build relationships between health insurance companies as well as pharmacies to offer discounts as well as promote the best options for customers.
Hirsch, a former Yahoo executive, co-founded GoodRx alongside fellow tech veterans Trevor Bezdek as well as Scott Marlette.
that has a $2.8 billion valuation as well as backing via Silver Lake, GoodRx has 10 million monthly users as well as impacts about 2% of U.S. prescriptions, Hirsch said, “so we got a long way to go to help all Americans.”
The company claims to have helped people save more than $10 billion on prescriptions.
More via CNBC Disruptor 50:
A big breakthrough in feeding the entire world may be spotted via outer space
Inside Impossible Foods’ mission to create the burger of the future
Why the next Uber may come via trucking
“We have a great relationship both CVS as well as Walgreens because they actually want consumers to get an affordable cost for their drug, ” Hirsch said. “We always start via the premise: Whatever can be best for the consumer can be what we’re gonna show them first.”
GoodRx also partners with Target, Kroger, as well as Walmart as well as provides real-time prices at 70,000 stores across the country.
The health-care system has been criticized for its lack of transparency as well as the prevalence of predatory prescription pricing. The industry has been a hot political topic, with several Democratic presidential candidates advocating for various forms of universal health care to broaden coverage.
Leaders of both major political parties have also argued, while reform can be needed, which the market should dictate prices. In efforts to boost transparency, the Trump administration last week announced plans to require drug companies to reveal prices in television advertising.
In its quest to lower costs at the pharmacy counter, GoodRx provides coupons as well as started off listing online telemedicine options, or remote health-care service providers.
GoodRx uses its database of pricing information across various pharmacies as well as can direct consumers to options which could exist at drug store around the corner, Hirsch explained.
“[Pharmacies] need to work with insurance companies,” he said. “They need to work with people like us to come up that has a cost in order which they can again provide an affordable cost to a consumer as well as at the same time be able to make some money.”
In order to make their own money, GoodRx has multiple options including a subscription product called GoodRx Gold, referral fees, as well as advertising, Hirsch said.
Hirsch said which about half of U.S. doctors recommend us “because they want their patients to take the meds they prescribe.”
WATCH: Cramer sits down with GoodRx co-CEO Doug Hirsch
Disclosure: Cramer’s charitable trust owns shares of CVS.
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer’s world? Hit him up!
– Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the “Mad Money” website? [email protected]