Health Insurance Daily

Patients Quicker To Switch To Generic Drugs

A new analysis confirms that workers are saving money by switching more rapidly to generic drugs as they appear on the market, a trend that may provide hope for HR professionals struggling to hold down corporate medical expenses.

Generic dispensing rates for four drugs (Allegra, Arava, Amaryl, and Zithromax) reached 87% within 30 days after the generic option became available, according to Medco, a pharmacy benefit management firm based in Franklin Lakes, N.J. The average generic fill rate for the four drugs was 95% at Medco's mail-order pharmacies and 86% at retail pharmacies. Historically, it has taken six months or more to reach 90% generic replacement in retail pharmacies.

Medco estimates that the generic availability of the four drugs could save its clients and patients $130 million annually.

Dr. Glen Stettin, Medco's senior vice president clinical products, says, “The really good news is that these four generic medications are just the start. With a number of popular medications expected to move off patent in the next several years, we should see substantial prescription drug cost savings."

Almost 70 brand-name drugs, including Zocor, Zoloft, and Ambien, collectively accounting for more than $45 billion in U.S. sales, are expected to become available as generics within the next five years, Medco estimates.

Article published by BenefitNews 1-26-06.

posted by Mike @ 11:30 PM