Cheap Generics Key To Savings On Health Care?

What if one of the answers to skyrocketing healthcare costs were right in front of us, but we just don't see it? That's a question posed by a University of Pittsburgh study, published in the Archives of Internal Medicine.

In the study, researchers suggest that if everyone who was eligible took advantage of a $4 generic drug program, offered by a number of drug stores, the total savings could amount to $6 billion.

$4 generics

Wal-Mart started the $4 generic drug program several years ago and now, many other national drug store and pharmacy chains have similar programs. If a patient's prescription can be substituted for one of the generics on the list, the consumer pays just $4 each time the prescription is filled.

The study examined a large group of people who used generic medications or their brand-name counterparts - drugs like lovastatin or prescription-strength ibuprofen - that also were available for $4 per 30-day supply through a discounted generic drug program.

Despite the very significant savings offered by the generics, the study found that among the patients taking these medications, less than 6 percent used the $4 generic medication programs in 2007. They passed up these savings even though average prescription drug coverage plans ask patients to pay about $10 per 30-day supply for generic drugs and about $25 per 30-day supply for brand-name medications.

$5.8 billion in potential savings

If all eligible patients used the discount programs in 2007, the researchers say society would have saved $5.8 billion on prescription drug spending. Why do consumers pass up this savings? The study doesn't address that, though researchers suggest the individual savings, on a case-by-case basis, might not seem that large.

"Although just half of the potential users of the $4 programs would have saved more than $22 a year in out-of-pocket expenses, the societal savings are great. This suggests the majority of savings comes from a small proportion of individuals," said the study's lead author, Yuting Zhang, Ph.D., assistant professor of health policy and management, at the University of Pittsburgh.

The researchers conclude that some of the answers to ever-expensive health care may, in fact, be simple. And consumers looking for ways to trim their budgets in these tight times should check to see if their prescriptions are available for $4.

"We are not promoting any specific pharmacy or any retail store's discount generic medication program," Zhang said. "However, if policy makers and clinicians direct patients to low-cost generic programs, patients and taxpayers could save tremendously."