Generic drug use varies widely by state, USA

[Guest guest]

Generic drug use varies widely by state, USA

07 Dec 2004

http://www.medicalnewstoday.com/medicalnews.php?nwsid=17428

Generic drug use varies widely by state, according to a new Express Scripts

study that measured per capita generic drug utilization in 2003 using a random

sample of approximately 3 million pharmacy benefit plan members age 18 to 64.

The study revealed that Massachusetts had the highest generic dispensing rate,

at 51%, followed by New Mexico and Oregon, with generic dispensing rates of

approximately 50%.

Eastern states, such as New Jersey and New York; and southern states, including

Texas, Louisiana, Florida and Mississippi, used generics to fill fewer than 43%

of all prescriptions. New Jersey used generics for fewer than 40% of all

prescriptions.

Possible explanations for the variations in generic fill rates include

variations in prescribing patterns, state regulations, differences in disease

prevalence and varying use of drug benefit designs that encourage greater use of

generics. A copy of the study is available at

http://www.express-scripts.com/ourcompany/news/outcomesresearch/onlinepublicatio\

ns.

By the end of 2008, branded pharmaceutical products accounting for more than $38

billion in sales last year are expected to lose patent protection. Taking

advantage of generics can result in significant savings for plan sponsors and

their members. Express Scripts statistics show that for every 1% increase in

generic drug use, prescription benefit plan sponsors save nearly 1% off their

cost for drugs in providing the benefit. Express Scripts' overall generic

dispensing rate increased to 51% in the third quarter of 2004.

The generic variation study is the second Express Scripts study to examine

geographic variations in prescription drug use. In 2001, Express Scripts

research in geographic variation in prescription drug use found significant

variation in the prevalence of use of prescription medication overall and across

many therapy classes. This study points to opportunities currently available to

plan sponsors to encourage greater use of generic medications.

" Generic drugs are the key to managing the growing cost of prescription drugs,

making it possible for plan sponsors to continue to provide an attractive

prescription benefit for their members, " says Motheral, vice president of

Research and Trend Management, Express Scripts.

Express Scripts offers plan sponsors numerous programs that promote the

cost-saving opportunities associated with generic drugs, saving money for both

plan sponsors and their members.

For example, GenericsWorkSM, a generics-focused program, provides savings

opportunities for plan sponsors and members by promoting the use of generics and

low-cost brands. Plan sponsors that implement GenericsWork should see their

generic fill rate increase to 75%. A plan sponsor providing prescription

benefits for 100,000 members would realize an estimated $25 million in savings

over three years using GenericsWork. Express Scripts also offers a Zero Dollar

Generic Copay program, which allows a plan to waive six months worth of

prescription copayments for members who switch from using a higher-cost branded

drug to a lower-cost generic within certain therapy classes. With the Zero

Dollar Generic Copay program, sponsors save through greater use of generics, and

members get lower copayments.

In addition, more clients are choosing to implement step therapy programs, which

require the member to try a lower-cost alternative, often generic, before a more

expensive brand product is covered. Step therapy has proven to be such a

successful tool for plan sponsors that enrollment in step therapy grew from 4.5

million to 12.4 million members from the end of 2002 to June 2004, with the

average plan sponsor implementing more than four of the 20 modules available.

Express Scripts recently launched Rx OutreachSM, the country's first

prescription drug assistance program for generic drugs. Rx Outreach offers more

than 50 different FDA-approved generic medications to lower-income adults and

children for health problems such as diabetes, asthma, high blood pressure,

breast cancer and depression.

Medicines through Rx Outreach cost $18 for a three-month supply or $30 for a

six-month supply. Rx Outreach offers significant savings. Without access to Rx

Outreach, consumers would pay an average of $100 for a 90-day supply of a

medicine available through the program. For some Rx Outreach medicines, the

price can be as much as $400 for a 90-day supply.