Tip Tuesday! Finally: One area where health plans will see relief

August 9, 2011 by Christian Schappel

It’s about time: There’s a reason you can breathe a little easier about your company’s healthcare plan.

Seven of the world’s 20 best-selling prescription drugs are coming off patent and will have generic alternatives available by September 2012.

That means big cost savings for your company — and employees.

Two of the big-name drugs that’ll soon be available in generic form: Lipitor (retailing for nearly $190 a month) and Plavix (about $215 a month), according to a report by CNN Health.

Generics can cost as much as 80% less than their brand name equivalents. So those with a prescription drug plan could be looking at huge savings.

Better adherence

The initial savings from the switch to generics isn’t expected to be the only benefit to employers and their workers.

Doctors believe the lower costs for the meds will lead to more people adhering to their medication regimens — and that means healthier employees.

By the end of 2012 there will be generic alternatives for top-selling drugs used for blood pressure, asthma, diabetes, depression, high triglycerides, HIV and bipolar disorder.

Dramatic changes will take time

Although the drugs will come off patent soon, prices may not fall of the cliff immediately.

According to The Associated Press, in many cases only one generic version may be allowed for a drug losing patent protection within the first six months of losing its patent.

So chances are prices won’t really start to plummet until multiple generic makers are allowed to start producing their versions of the drugs.

But it’s still a good time to encourage employees to check to see if there’s a generic alternative of their medication available — or about to become available.

For a list from Medco Health Solutions of meds set to lose patent protection in the coming years Click Here.

Drug prices to plummet in wave of expiring patents – including Lipitor, Plavix

By Associated Press

The cost of prescription medicines used by millions of people every day is about to plummet.

The next 14 months will bring generic versions of seven of the world's 20 best-selling drugs, including the top two: cholesterol fighter Lipitor and blood thinner Plavix.

The magnitude of this wave of expiring drugs patents is unprecedented. Between now and 2016, blockbusters with about $255 billion in global annual sales are set to go off patent, notes EvaluatePharma Ltd., a London research firm. Generic competition will decimate sales of the brand-name drugs and slash the cost to patients and companies that provide health benefits.

Top drugs getting generic competition by September 2012 are taken by millions every day: Lipitor alone is taken by about 4.3 million Americans and Plavix by 1.4 million. Generic versions of big-selling drugs for blood pressure, asthma, diabetes, depression, high triglycerides, HIV and bipolar disorder also are coming by then.

The flood of generics will continue for the next decade or so, as about 120 brand-name prescription drugs lose market exclusivity, according to prescription benefit manager Medco Health Solutions Inc.

"My estimation is at least 15 percent of the population is currently using one of the drugs whose patents will expire in 2011 or 2012," says Joel Owerbach, chief pharmacy officer for Excellus Blue Cross Blue Shield, which serves most of upstate New York.

Those patients, along with businesses and taxpayers who help pay for prescription drugs through corporate and government prescription plans, collectively will save a small fortune. That's because generic drugs typically cost 20 percent to 80 percent less than the brand names.

Doctors hope the lower prices will significantly reduce the number of people jeopardizing their health because they can't afford medicines they need.

Click Here to read the full article.