CareFirst BlueCross BlueShield Offers Members Coupon to Encourage Generic Drug Use Effort Aimed at Reducing Drug Costs for Members

September 5, 2006

OWINGS MILLS, MD (September 5, 2006) - Beginning this month, CareFirst BlueCross BlueShield (CareFirst) and CareFirst BlueChoice will offer members a coupon worth up to $10 off of their prescription drug co-pay for the first-time purchase of certain generic drugs. The effort seeks to encourage members to consult with their physician about generic alternatives to high-priced brand-name drugs. Moving from a brand to a generic drug can save consumers hundreds of dollars annually in out-of-pocket health care costs.

"Generic drugs have the same active ingredients and produce the same clinical benefit as their brand-name equivalents," said Winston Wong, Pharm. D., CareFirst Associate Vice President of Pharmacy Management. "By providing this financial incentive and encouraging our members to discuss generic alternatives with their doctor, we will help them manage their health care spending and reduce care costs."

The prescription drug coupon program will run through December 31, 2006. CareFirst and CareFirst BlueChoice members who present the coupon when switching for the first time from one of more than 100 identified brand-name drugs to a generic will receive up to $10 off their generic co-pay when the prescription is filled. The identified brand name drugs fall into six therapeutic classes: high blood pressure and heart disease; diabetes and high blood sugar; anti-depressants; high cholesterol drugs; allergy medications; and pain management.

According to the National Association of Chain Drug Stores, the average price of a generic drug prescription in 2004 was $28.71, while the average brand-name drug prescription cost $95. The use of generic drugs is increasing annually, and more than one billion prescriptions for generic pharmaceutical products are written each year. More information on generic drugs can be found by visiting www.carefirst.com/generics.

"An important part of this effort is education. While some brand name drugs have no generic equivalent, often another drug in the same therapeutic class does," added Wong. "By asking their physician about lower cost drug alternatives, individuals may be able to continue the appropriate course of care while substantially reducing their health care costs."

In its 71st year of service, CareFirst, an independent licensee of the Blue Cross and Blue Shield Association, is a not-for-profit health care company which, through its affiliates and subsidiaries, offers a comprehensive portfolio of health insurance products and administrative services to nearly 3.4 million individuals and groups in Northern Virginia, the District of Columbia, Maryland and Delaware. Through its CareFirst Commitment initiative and other public mission activities, CareFirst supports efforts to increase the accessibility, affordability, safety and quality of health care throughout its market areas.