Average Prescription Drug Copayment Decreased In 2007 Because Of Increased Use Of Generic Medications, Report Finds

Main Category: Public Health
Also Included In: Health Insurance / Medical Insurance;  Pharma Industry / Biotech Industry
Article Date: 18 Apr 2008 - 8:00 PDT

email to a friend   printer friendly   view / write opinions   rate article

The average prescription drug copayment for patients in 2007 decreased by 25 cents to $13.20 -- the first such decrease in at least five years -- as the average total cost of such medications increased from $55.01 in 2002 to $55.93 in 2007, according to a report released on Wednesday by pharmacy benefit manager Express Scripts, the AP/Philadelphia Inquirer reports. For the 2007 Drug Trend Report, Emily Cox, senior director of research at Express Scripts, and colleagues examined prescription claims data from customers. Express Scripts processes more than one million prescription claims daily.

The report attributed the decrease in the average prescription drug copay to an increase in the number of customers who have switched to generic medications. According to the report, 64% of prescription claims in 2007 involved generic medications, compared with 42% in 2002.

In addition, the average copay for preferred brand-name prescription drugs increased by $4.52 to $19.18 between 2002 and 2007, and the average copay for nonpreferred brand-name medications increased by $11.28 to $28.44 during the same period, according to the report. By comparison, the report found that the average copay for generic prescription drugs increased by only 86 cents to $7.57 between 2002 and 2007.

Cox said, "When more generics are used, benefit plan sponsors can control plan costs without shifting these costs to consumers" (Salter, AP/Philadelphia Inquirer, 4/17).

The report is available online.

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.