Generic doesn't mean Cheap

There is a common misconception in the world of pharmacy that “generic” means “cheap.”  While these two words have typically been synonymous with each other over the past 20 years, we are seeing more and more generic drugs creep into the range of $100, $250 and even as much as $1,000+/mo. 

The recent news about Turing Pharmaceuticals CEO Martin Shkreli raising the price of a 60-year old generic drug (daraprim) by 5000% is just one of the many cases where your company and your employees may be subjected to high cost generics.  

Our data and patented software shows this same practice is happening more and more with common drugs used for blood pressure, high cholesterol and diabetes and will mean billions in new costs to those paying the bill, namely self-funded organizations and their health plan members.  Our data has shown price variations on statins, ARB’s, oral hypoglycemics and other generic medications in excess of 2000%. 

So who’s profiting and who's to blame?  It depends on the case and can include parties other than the pharmaceutical company producing the medication.  As the medication goes through the supply chain, there is opportunity to touch and influence its price along the way. 

While “generic utilization” rates have been a telling statistic when looking at how your overall trend was doing, with the changes in the market, even companies touting 90+% generic utilization rates are exposed to much higher costs than they should be.  As your company develops a strategy with your consultant or broker to address the rising costs of your prescription benefit, having a specific strategy to combat this practice becomes more important by the day. 

Putting together a strategy that empowers your members to be active and savvy shoppers on the most predictable and repeated transaction in healthcare, pharmacy, is a great way to begin changing behavior and save money. Many people don't realize there are options out there and they really can save money. Whether it’s using a free drug price lookup tool like Medfisher.com or our proactive, patented and proven enterprise solution at Rx Savings Solutions --- choices are available. Consider pharmacy as a great segue into a greater healthcare consumerism strategy.