Health Insurance Daily

Health Plans Expect Generics To Reduce Drug Costs in 2006

Insurers are likely to see pharmacy cost trends fall significantly by the end of 2006, driven down by several generic-drug switches, say managed care organizations (MCOs) and analysts.

But one health plan warns that it expects pharmacy costs for Allegra, the popular allergy medication, to rise in the short term as a result of the generic launch.

CIBC World Markets equity analyst Carl McDonald estimates that the overall pharmacy trend — which already has slowed to a range of 9% to 10% in 2005 from high double-digit rates several years ago — could fall to 6% to 7% by the end of 2006.

To read this article in its entirety click on Managed Care Week.

posted by Mike @ 2:17 PM