The Philadelphia region's largest health insurer is calling its yearlong campaign to convince customers that no-frills prescriptions are the same as their brand-name cousins a generic success.
Independence Blue Cross says the promotion, which provided 1.2 million of its 3.2 million customers with free generics this year, cost the company $50 million in co-pays. But a recent survey suggests 87 percent of customers plan to continue generics after the program ends Dec. 31.
“It exceeded our expectations,” said Paul Urick, the company's head of pharmacy.
Generics use among customers increased 6 percent in the last year — from 52 to 58 percent — with more than 6 million generic prescriptions filled, company officials said.
The No Pay Co-pay Program waived the typical $5 to $15 co-pays for generic drugs as part of an educational effort encouraging members to try the lower-cost drugs instead of name brands.
After its January launch, the program became so popular that company officials extended it from the original three-month run to the end of the year.
A recent company survey of 805 Philadelphia area Blue Cross customers found that more than 70 percent had a favorable impression of generics before No Pay Co-pay, but nearly half said the waived co-pay made them asked their doctors if a generic drug was available.
Among customers with chronic medical conditions, such as diabetes or high blood pressure, 56 percent of those surveyed said the free generics program saved them from cutting back on other important household expenses.
One in four Blue Cross members indicated they're motivated to switch to generics when they'll save $20 or more between the generic and the brand name. The company says its brand name customer co-pays typically start at $40.
Generic drugs typically cost 30 percent to 80 percent less than their brand name counterparts, and carry lower co-pays in health plans, according to the Generic Pharmaceutical Association, a trade group. Last year, the average retail price of a generic prescription drug was $32.23. The average retail price of a brand name prescription drug was $111.02.
Nationally, generic medications accounted for 63 percent of all U.S. prescriptions last year, up from 51 percent in 2002, according to IMS Health, a pharmaceutical research firm.
The manufacturers of generic drugs must show the generic version is “bioequivalent” to the brand name drug, meaning it delivers the same amount of the active ingredient in the same timeframe as the original brand product and contains the same quality, strength, purity and stability as brand name drugs.
The federal Food and Drug Administration says the quality standards for generics are the same for brand name and generic products. Some critics, mostly scientists, say that bioequivalence and therapeutic efficacy are not necessarily the same.
Generic drugs are less expensive because manufacturers don't have the investment costs of the developer of a new drug. New drugs are developed under patent protection, which protects the company investment. A typical drug patent lasts 20 years.
Of the 11,487 approved drugs on the FDA list, 8,730 — roughly 76 percent — have generic equivalents, according to the Generic Pharmaceutical Association. As patents near expiration, manufacturers can apply to the FDA to sell generic versions.
Last year, more than 510 applications for generic medicines were approved by the FDA, leaving more than 1,000 generic applications pending review.
Next year, patents for at least four brand name drugs expire, and the FDA has approved generic equivalents. They are: Fosamax, which treats osteoporosis; Risperdal, an anti-psychotic; and the anti-seizure drugs Depakote and Topamax.
Blue Cross officials say they'll continue to monitor customer generic drug usage next year to see if customers continue using them after the generic co-pay returns.
“That is the question to be answered,” Urick said. “It was such a high level of confidence [in the survey] we felt that type of number clearly meant that we maximized it.”
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