Generic Prescribing
Health plans, employers and patients can realize substantial cost savings from generic prescriptions. It is estimated that every percentage point increase in generic utilization reduces overall drug spending by nearly a percentage point.4 Extensive research demonstrate the effectiveness of generic medications in treating patients. In addition, all generics have long-term safety data often not available with newer, branded medications. This combination of long-term efficacy and safety data combined with their lower cost makes generic pharmaceuticals a cost-effective options for physicians and their patients.5Health Partners, in partnership with an employer-sponsored health plan, launched a generic prescribing initiative in 2009. The health plan spent $2.5 million on 13 brand name drugs with generic alternatives in calendar year 2008. Spending on these 13 brand name drugs represents 23.8% of the health plan's pharmacy costs in 2008. Over 13,000 scripts were written for these 13 drugs in 2008. These drugs were selected because they have a generic alternative and/or alternatives that can be purchased over the counter. The goals of the initiative are to:
1. Maximize medication compliance to improve health outcomes by ensuring patients are provided with affordable medications.
2. Reduce the health plan's costs for 13 selected brand-name pharmaceuticals by 20% through appropriate use of generic alternatives.
The initiative will end on December 31, 2009 and results will be shared with physicians and will be reported in the 2010 Commitment to Quality Report. Pleaes see our Report on Generic Prescribing for more detailed information.
