New IMS Health Report Finds Generic Drugs Used More in Part D than Commercial Market
August 2, 2007
Previously Uninsured Seniors Saving on Average 60 Percent on Medicines
(Washington, DC)—A key benchmark of plan performance—the use of generic medications—is higher in Medicare Part D than in the rest of the marketplace, according to a new report from IMS Health, a global pharmaceutical and healthcare consulting firm. Part D plans have also helped previously uninsured seniors to reduce their out-of-pocket costs by 60 percent per prescription according to IMS, said the Pharmaceutical Care Management Association (PCMA) today.
The new IMS report—Medicare Part D: The First Year—examines the impact of Part D on medication use among seniors. Specifically, IMS finds:
- Generic drugs comprise 58 percent of prescriptions in Part D, compared to 57 percent of all retail prescriptions;
- In Part D, patient compliance with therapies for chronic conditions increased in 4 out of 5 therapeutic categories;
- Previously uninsured seniors in Part D increased their use of all medications—including both generics and brands—by 26 percent while their out-of-pocket costs per prescription decreased by 60 percent;
- Seniors switching from third-party coverage to Part D increased their prescription use by 10 percent, while their out-of-pocket drug costs decreased by 17 percent; and
- Only 6 percent of enrollees entered the donut hole, and a sizable portion of those enrollees did so in the final days of the year.
“PBMs have played a key role in increasing generic utilization in Part D,” said PCMA President Mark Merritt. “This new report is further evidence that Part D plans and the PBMs who administer them are reducing costs and increasing access for America’s seniors and the disabled.”
In addition to the most recent data from IMS, a study earlier this year from PricewaterhouseCoopers (PwC) found that proven pharmacy benefit management tools in Part D are estimated to save beneficiaries $693 billion over the 2008 to 2017 period, including $43 billion in reduced prescription drug costs in 2008 alone.
Charles Coté 202-207-3605