Quick Summary: The cost-savings potential of generic drugs has never been greater. Many heavily used brand-name drugs have lost, or will soon lose, their patent protection, paving the way for lower-cost generic versions to be sold. But how do you convince your employees to make the switch?
First, understand these reasons why they may be reluctant to make a change:
Lack of information and misconceptions. People often fear that generics won’t work as well as the brand-name drugs. They also may hold onto the notion that the more expensive something is, the better it is.
Advertising. About $5 billion is spent each year on consumer advertising for brand-name drugs. Why? Because it works. Studies show that 1 in 3 patients will ask their doctor for a drug they saw advertised. And most of the time, doctors comply.
Marketing to physicians. In addition to consumer ads, drug companies spend in excess of $7 billion a year marketing to physicians. This includes providing samples of their brand-name drugs for doctors to distribute to patients. Once a patient has started treatment with a brand-name drug, he or she is not likely to ask for a generic when filling a prescription.
Patient-physician relationships. Patients may not want to appear to question the doctor’s judgment by asking about a generic when a brand-name drug is prescribed. They may not even be able to tell by looking at the prescription whether it’s for a generic or brand name.
So what will convince your employees to ask about generics? Here’s what you might tell them:
• A generic drug contains exactly the same active ingredients in the same amounts as its brand-name counterpart. It is used to treat the same conditions and is identical in the way it works.
• They are safe. The Food and Drug Administration regulates the production of generics as strictly as brand names. And, since their active ingredients are the same, both types of drugs have the same benefits and risks.
• Generics are less expensive because their manufacturers don’t have to recoup all of the research and development costs of a new drug. That cost was borne by the brand-name manufacturer, whose investment was protected by a 20-year patent. When that patent expires, more than one manufacturer can begin producing the drug.
• 75% of all brand-name drugs have a generic version.
• Savings with generics can range from 20% to 70%.
• Most doctors welcome a discussion about generics.
Next Steps:
• Remind employees how your drug plan works. Make sure to explain tiers and formularies.
• Advise them to price generic medication at several pharmacies. Costs vary widely. Use specific examples, when possible, to illustrate how much can be saved.
• Explain how some of the newer options, such as the $4 generics available through some large retail stores, may actually cost less out of pocket than using their drug coverage.
• Work with your pharmacy benefits manager to determine where opportunities might exist to boost generic drug usage and save money. Communicate the message to your employees at a time other than annual enrollment. Use specific examples as often as possible to convey your message.
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