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November 20, 2007
No Pay Copay Promotion to Close Year End – Members Endorse the Use of Generics – Generic Utilization Increases
Last January we launched the No Pay Copay promotion with two goals: to increase awareness of generic drugs and encourage our members’ use of generics. As a result of preliminary findings, we then extended the program to run through the end of 2007 and expanded it to include members with integrated prescription drug coverage. This promotion was just one of the initiatives in our overall strategy to control the rising costs of prescription drugs for our customers.
As the promotion is coming to a close at the end of 2007, we are pleased to announce that we have seen a significant increase in the use of generic drugs:
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Due to our enhanced formulary management, the greater number of generics available for blockbuster drugs for which the patent has expired such as Welbutrin XL®, Norvasc®, and AmbienTM, and the success of No Pay Copay, we have seen a 12 percent increase in generic utilization among our commercial members.
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Since October 2006, the use of generics by IBC commercial members has increased six percentage points from 52.1 percent to 58.3 percent.
The No Pay Copay promotion has been extremely well received by our membership.
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IBC has waived copayments for more than 5.6 million generic prescriptions.
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A recent survey by IBC of members who have IBC drug coverage shows members are confident using generic drugs – 75 percent of those surveyed believe that generics are as safe and effective as their brand-name equivalents.
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When asked whether they would consider generics in the future, 87 percent of members surveyed indicated they are likely to ask for a generic drug when the No Pay Copay promotion ends.
The results of this promotion reinforce our belief that financial incentives do motivate member behavior. Additional findings from our member survey show that the greater the difference between generic and brand copayments, the more likely members are to make the switch to generics, with more than one in four telling us they would switch if the copayment difference was $20 or greater. Furthermore, the vast majority, more than 80 percent, of members surveyed claim they typically take advantage of any cost savings they can regarding their health care choices.
We encourage you to review the various prescription drug programs available through IBC with your group customers to see how a greater difference in cost sharing can help manage drug costs and facilitate the transition to generics. More than three quarters of the members we surveyed told us that health insurance companies should encourage their members to use generic alternatives. We will continue to reinforce this message with our membership in upcoming member communications.
Independence Blue Cross offers products directly, through its subsidiaries Keystone Health Plan East and QCC Insurance Company, and with Highmark Blue Shield. Independent licensees of the Blue Cross and Blue Shield Association.
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