Generic Drugs Can Be Good For Your Health And Your Wallet

Innovative Blue Cross and Blue Shield Plan programs are proving successful

April 9, 2009

 Generic drug use among Blue Plan members jumped 8 percent from 2007 to 2008

WASHINGTON – Community-based programs led by Blue Cross and Blue Shield companies and employers are helping to expand consumer use of safe, effective, and lower-cost generic prescription drugs, according to results of a new survey by the Blue Cross and Blue Shield Association (BCBSA).

BCBSA found that generic drug use among Blue Cross and Blue Shield Plan members increased from 60 percent to 65 percent between 2007 to 2008 – an increase of more than 8 percent. The analysis of prescription use by 51 million subscribers in 32 Blue Cross and Blue Shield companies found that expanded use of generic drugs generated at least $2.5 billion in savings.  BCBSA believes the marked increase in generic drug use among Blue Plan members stems from a variety of factors including increased education and promotion, benefit design and provider incentives.

The findings were shared during a media briefing with representatives of Excellus BlueCross BlueShield, Birds Eye Foods, Inc., and the Consumers Union to highlight how generic drugs can be a powerful tool to lower healthcare costs and, in the process, improve quality by ensuring greater adherence to prescription drug regimens, particularly for the chronically ill.

"Generic alternatives to high-priced branded drugs help increase adherence to prescribed drug therapies and improve healthcare, while providing value to increasingly cost-conscious consumers and businesses," said John Frick, R.Ph., director, pharmacy initiatives for BCBSA.  "Promoting the adoption of generic drugs through partnerships with employers and creative outreach programs is one way that Blue Cross and Blue Shield companies are helping members stay healthy and save money."

Blue Cross and Blue Shield companies nationwide are partnering with employers and using webinars, newsletters, telephone calls, e-mail messages, paycheck stuffers, employer toolkits, media campaigns, and other creative strategies to get the message out to consumers about the advantages of high-quality and high-value generic drugs.  BCBSA supported recently enacted legislation expanding the use of electronic prescribing in Medicare, which is also likely to help expand generic drug use by providing patients and physicians with complete formulary information – including generic alternatives – in real time at the point of prescribing.

The Upstate New York Experience

In upstate New York, generic drug use has increased 14.6 percentage points and saved more than $725 million since Excellus BCBS launched its first generic drug savings report and advertising campaign in late 2005.  Excellus BCBS uses a combination of strategies to educate employers, patients and providers about the safety, effectiveness and cost-saving benefits of generics, including television commercials, online tools, and working with employers such as Birds Eye Foods, Inc.

"Through our 'Generics are Real' community campaign we've made tremendous progress in our goal to help consumers, employers and taxpayers save money," said Joel Owerbach, Pharm.D., vice president and chief pharmacy officer for Excellus BCBS.  "Consumers are paying smaller copayments at the pharmacy and employers, workers and taxpayers are realizing savings through a slow down in the growth of prescription drug expense."

Birds Eye Foods and its 1,700 employees and their families saved nearly $240,000 in 2008 thanks in part to the food company's partnership with Excellus BCBS to encourage generic drug use.

"Our partnership with Excellus BlueCross BlueShield helps employees stay healthy, and reduces Birds Eye Foods' benefits costs, which helps us keep prices lower for our employees," said Diane Mohorter, senior manager of benefits at Birds Eye Foods.

Birds Eye Foods' generic fill rate reached 69 percent in 2008, increasing nearly 15 percentage points since 2004 in part due to the company's collaborative efforts with Excellus BCBS in the Generics are Real campaign.  The campaign offered a variety of tools for Birds Eye Foods employees including generic drug reference guides, e-mail messages and Web resources.

"Our studies show that consumers are putting their health in jeopardy by skipping doses, delaying or not taking their prescriptions because of the costs and the difficult economy," said Gail Shearer, director of health policy analysis at Consumers Union.  "Generic drugs offer a safe and smart alternative that provide the benefits of name-brand drugs at a fraction of the cost."

Encouraging a competitive pharmaceutical market by removing barriers to safe, effective and affordable generic prescription drugs is a key component in BCBSA's comprehensive healthcare reform proposal, "The Pathway to Covering America."  The five-point plan to improve access and healthcare quality can be viewed at: www.bcbs.com/issues/uninsured/pathway-to-covering-america/.