Increase in Generic Fill Rate Saved Upstate New York More Than $224 Million in 2007

ROCHESTER, NY (01/10/2008)(readMedia)-- Measurable increases in the use of generic drugs as alternatives to higher-priced brand name drugs produced estimated savings totaling $224 million across upstate New York in 2007, according to an updated analysis of prescription patterns released today by Excellus BlueCross BlueShield (BCBS).

The analysis shows that from October 2006 to October 2007, the overall “generic fill rate” across upstate New York counties increased by nearly four points, from 60.1 percent to 63.9 percent. With approximately $5 billion spent on prescription drugs annually across upstate New York, this increase in the use of generics resulted in significant savings.

“In today’s economy, this level of health care savings is dramatic,” said Joel Owerbach, Pharm.D., vice president and chief pharmacy officer for Excellus BCBS. “We estimate that as many as four million additional generic prescriptions were filled in 2007 with an estimated $50 million in savings at the pharmacy counter through lower copays and out-of-pocket costs.”

The analysis was based on prescription consumption patterns of 1.3 million people living in 39 counties of upstate New York from October 2006 to October 2007 and then extrapolating the findings to the larger population of those counties. The updated report, titled “The Facts About Realized Savings From Generic Drugs In Upstate New York,” is available online at www.excellusbcbs.com in the site’s “Public Policy and Research” section. This update comes a year after Excellus BCBS issued a report stating that upstate New York had saved more than $130 million in 2006 by increasing the use of generic drugs.

Excellus BCBS issued its first generic drug savings report in late 2005. At that time the generic fill rate for the upstate population was 53.8 percent or 10.1 percent lower than it is today.

“The increase in generic drug use means that more people in our community can afford important drug therapy,” said Owerbach. “Our primary message is to encourage everyone who is taking a medication to ask their health care provider and pharmacist if a generic option is available and right for them. Clearly tens of thousands of people have asked that question and were switched to a generic.”

Generics are as safe and effective as their brand-name counterparts but are generally less expensive for an increasing number of patients. The increased use of generics is widely considered a way to slow the rise in health care costs. With the ever-increasing availability of generic options, more and more Americans are seeing the value of generics and using them to help save money on their prescription drug costs.

“In 2007 there were several significant brand name drugs that became available in a generic form, including Norvasc and Toprol XL for high blood pressure and Ambien to treat insomnia,” Owerbach explained. “We estimate that over a half million people began to save money immediately in 2007 when the brand name drug they were taking became available as a generic.

"Despite this progress, we still have a long way to go when it comes to realizing all the savings available from using generic drugs,” Owerbach said. “I encourage anyone who is taking a brand name medication to ask their pharmacist, doctor or health care provider if there is a generic that is right for them.”

The increase in the generic fill rate proves the importance of Excellus BCBS’ aggressive generic drug utilization strategy, which includes online tools to educate employers, patients and providers about the safety, effectiveness and cost savings opportunities available with generics. The online tools are free and available to anyone at www.go.excellusbcbs.com/generics.

Excellus BlueCross BlueShield, a nonprofit independent licensee of the BlueCross BlueShield Association, is part of a family of companies that finances and delivers vital health care services to 2 million people across upstate New York. Excellus BlueCross BlueShield provides access to high-quality, affordable health coverage, including valuable health-related resources that our members use every day, such as cost-saving prescription drug discounts and wellness tracking tools in our Step Up program. To learn more, visit www.excellusbcbs.com.