Merritt:  Policymakers Shouldn’t ‘Leave Money on the Table’  

Time to Leverage Biogenerics, E-Prescribing & Mail-Service Pharmacies

(Washington, DC)-New data released yesterday by the Blue Cross and Blue Shield Association (BCBSA) finding that 2008 generic-drug use among Blue plan members increased by more than eight percent and generated at least $2.5 billion in savings shows the growing alignment among consumers, physicians, and payers that generic drugs are a proven avenue to lower costs and quality health care, the Pharmaceutical Care Management Association (PCMA) said today.  However, PCMA also noted that the data underscore that policymakers continue to leave money on the table by not fully leveraging generics in a number of key policy areas, including biogenerics, electronic prescribing (e-prescribing), and mail-service pharmacies.

“With these data showing the clear alignment among consumers, physicians, and payers to expand the use and availability of generic drugs, we urge Congress to act this year on a far-reaching generic-drug agenda that will reduce costs and improve quality,” said PCMA President and CEO Mark Merritt. 

The Blue Cross and Blue Shield Association 2008 Generic Drug Survey is an analysis of prescription drug use of 51 million Blue plan members enrolled in 32 Blue Cross and Blue Shield companies.  Key findings include:

• Generic drug use increased by more than 8 percent from 60 percent in 2007 to 65 percent in 2008.
• Expanded use of generic drugs generated at least $2.5 billion in savings.

Mr. Merritt added, “When supported by important tools like e-prescribing and mail-service pharmacies, generic drugs are an important means to a better end – improved outcomes and lower costs.  Unfortunately, by failing to fully leverage these tools, policymakers are leaving a lot of money on the table that could help fund coverage expansions and strengthen the safety net.”

Earlier this year, researchers from the Centers for Medicare & Medicaid Services found that the rate of growth of 2007 prescription-drug spending slowed to a 45-year low, in large part because of expanded use and availability of generic drugs.

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New Biogenerics Legislation Will Save Lives, Money 

(Washington, DC)-The Pharmaceutical Care Management Association (PCMA) today launched a new ad campaign-“Waiting Isn’t An Option”-that urges policymakers to reject biogenerics legislation that creates unnecessary delays and instead support follow-on biologics legislation which allows generics to compete with expensive biotech medicines the way they already do with conventional brand-name drugs.

“This bipartisan bill will increase access to life-saving medications, save billions and ensure continued innovation for new groundbreaking biologics. It’s one of those rare ‘win-wins’ supported by consumers, ‘budget hawks,’ business, labor and policymakers on both sides of the aisle,” said PCMA President and CEO Mark Merritt.

Introduced last month in the House of Representatives by Energy and Commerce Committee Chairman Henry Waxman (D-CA), Representatives Nathan Deal (R-GA), Frank Pallone (D-NJ), and Jo Ann Emerson (R-MO), “The Promoting Innovation and Access to Life-Saving Medicine Act” would create a regulatory pathway for the Food and Drug Administration (FDA) to approve generic versions of biologic products.  

Companion legislation was introduced in the US Senate (S. 726) by Senators Charles Schumer (D-NY), Sherrod Brown (D-OH), Susan Collins (R-ME), David Vitter (R-LA), Debbie Stabenow (D-MI),  Jeanne Shaheen (D-NH), and Mel Martinez (R-FL). 

This bill would give brand-name biologics five years of exclusivity before generic versions could enter the market and would allow for greater savings to fund broader health reforms, in contrast to the competing House bill (H.R. 1548), which would give brand-name biologic manufacturers up to an unprecedented 14 years of exclusivity before generic versions could hit the market.

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PCMA Biogenerics Ad: “Waiting Isn’t An Option“