Premera Projects Multi-Million Dollar Potential Annual Savings in Regional Healthcare Costs as Blockbuster Cholesterol Drug Goes Generic
Potential is high because Premera members use generics more frequently than national average
Mountlake Terrace, WA. (June 23, 2006) – If consumers continue their past generic drug switch-over patterns, Premera Blue Cross said today consumers moving from the two leading cholesterol drugs to the new generic formulation of Zocor could reduce area employer and consumer healthcare costs by up to $5 million annually.
“If pharmaceutical industry projections of consumers switching from cholesterol category leader Lipitor and #2 Zocor are close, we could see up to $5 million in savings for employers, consumers and the healthcare system,” said Ed Wong, Pharm. D., Premera Blue Cross Pharmacy Director. “Our members already use generics more frequently than the national average. Therefore, we are confident they will do the same with their cholesterol medication.”
The cholesterol drug category has one of the highest costs for prescribed medications. Zocor ranks second only to Lipitor in cholesterol prescriptions written. A leading pharmaceutical market research firm estimates that about half of the physicians surveyed would switch their patients to the generic. This was especially true for the physicians’ lower-risk patients.
With direct-to-consumer advertising and pharmaceutical rep “detailing” – the practice of giving away free samples to physicians pushing drug costs up in recent years, Premera began in September 2003 a campaign called “Generics – Yes!” to demonstrate to employers, members and providers how they could have an impact on healthcare costs just by switching to generics. Efforts by key clinics, such as The Everett Clinic, to prohibit the practice of “detailing” have also had an impact locally on increasing generic usage.
Premera has learned from its campaign that for every one percent increase in the generics prescribed results in a 1.4 percent savings, which annually achieves a multi-million dollar overall pharmacy cost savings. Premera currently provides prescription drug coverage to more than one million members. Pharmacy costs are projected by the federal government to exceed 11.5 percent of all U.S. healthcare expenditures.
“Employers, who entice their employees with financial incentives to switch to generics, can lower their drug bills by the same rate,” said Dr. Wong. “Of course, consumers have already seen how they can save on their co-pays by asking for generics.”
About Premera Blue Cross
Our mission is to provide peace of mind to our members about their health-care coverage. We provide health insurance and related services to more than 1.3 million people. Premera Blue Cross has operated in Washington since 1933, and Alaska since 1957. Premera Blue Cross is an independent licensee of the Blue Cross Blue Shield Association.
Premera Blue Cross is a member of a family of companies based in Mountlake Terrace, Washington, that provide health, life, vision, dental, and long-term care insurance, and other related services.
CONTACT:
Mark W. Stuart
Phone: 425-918-3297
Cell: 425-931-7379
mark.stuart@premera.com