Study: Wider generic use would save Part D program billions
Increasing the dispensing rates for generic drugs among Part D beneficiaries could save billions of dollars, a pharmaceutical industry study found.The analysis by PriceWaterhouseCoopers found that plans participating in the Medicare Part D program would save about $469 billion between 2006 and 2015 based on current performance. But cost containment would receive a significant boost if generic dispensing rates increased by at least 5% among plans, according to the study, which was released by the Pharmaceutical Care Management Association. This would yield additional savings of up to $58 billion through 2015, the study indicated.
Part D plans could encourage greater generic dispensing rates by placing generics in lower formulary tiers with lower cost sharing, compared to brand drugs, PCMA said in the study report.
The report is available at http://www.pcmanet.org