Independence Blue Cross Announces End Of No-Cost Generic Drug Program

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Health Insurance / Medical Insurance
Article Date: 05 Dec 2007 - 12:00 PDT

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Independence Blue Cross last week announced that a program offering members no-cost generic prescription drugs has successfully encouraged people to switch to generic drugs and that the program will end, the Philadelphia Inquirer reports. The "no pay copay" program was launched in January and officials extended the program in March.

During the program, the portion of prescriptions filled with generic drugs increased from 52% to 58.3%, according to Independence spokesperson Karen Burnham. The company estimated that the program saved members about $50 million in waived copayments. About one-third of Independence's 3.2 million members were eligible for the program. Burnham said the insurer expects members to continue switching to generics even though copays will not be waived.

Employers still will have the option to waive copays for generic drugs when choosing health insurance plans. A survey showed that one-quarter of subscribers were motivated to switch to generics when the copay was $20 less expensive than for brand-name drugs. Because of those results, Independence will recommend a $20 price differential for drug copays, according to Burnham. The typical difference between copays for generic and brand-name drugs is $10 to $20 (Burling, Philadelphia Inquirer, 11/30).

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