Quick Summary: People often equate price with quality: A higher price gets you a superior product, so the thinking goes. That belief could be leading many of your employees to spend more than they need to on prescription drugs.
If you haven’t yet made the case to your employees about generic drugs, you could be costing them and your organization a lot of money. Chances are good that your drug plan already has incentives for using generics. But employee education can go a long way toward overcoming a lack of information and counteracting misconceptions.
You can teach employees the facts about generic drugs using the same type of communication plan you would implement for any important message. Use a variety of media and repeat the message clearly and often. Remember, you’re helping them to be better health care consumers.
Here’s what you can do:
• Provide the facts. The Web site of the Food and Drug Administration has an excellent explanation of what generics are and how they are regulated (www.fda.gov/cder/consumerinfo/generic_text.htm). Your pharmacy benefits manager (PBM) may also offer such material.
• Make sure your employees understand how your drug plan works. Confusion about tiers and formularies is common.
• Use concrete examples of savings. Compare the average cost of the top 5 brand-name drugs used by your employees to their generic equivalents. The difference can be startling. In 2007, the average brand-name prescription cost more than $119, while the average generic cost just over $34. (Source: The National Association of Chain Drug Stores)
• Appeal to your employees’ self-interest. Clearly point out how they can benefit financially from the switch to generics.
• Encourage them to shop around. The cost for generics can vary widely from one drug store to another.
• Work with your PBM to identify those who use brand-name medications on an ongoing basis. When they are due for refills, the PBM can send a letter or email suggesting these patients consider a generic alternative. Remember, this should always come from the PBM to avoid breaching confidentiality.
•Refer employees to online sites to determine if a generic is available for their medication and what they could save by switching. About 75% of all brand-name drugs have generic equivalents. Good sites include the FDA’s “Electronic Orange Book” at www.fda.gov/cder/ob and www.drx.com. Your medical and/or drug plan sites also may contain this information.
• Keep employees informed as new generics become available. More and more top selling brand-name drugs are losing their patent protection, opening the door for lower-cost generics.
• Encourage employees to talk with their doctors. Doctors generally are very receptive to patients who ask about generic alternatives.
Next Steps:
- • Partner with your pharmacy benefits manager to find actual generic drug savings examples your employees will appreciate. Convey this information in newsletter articles and on your intranet.• Create opportunities to reinforce how your drug plan works.
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