December 19, 2013
Generic medications accounted for more than $1 trillion in overall savings during the last decade, according to a new study released by the Generic Pharmaceutical Association (GPhA). Through innovative utilization management tools, pharmacy benefit managers are the primary drivers for increased use of generic drugs, the Pharmaceutical Care Management Association (PCMA) said today.
“This study confirms that lower cost generics continue to save employers, unions, and government payors billions of dollars on their drug costs,” said PCMA President and CEO Mark Merritt. “PBMs are experts at delivering these savings through lower cost sharing, generic incentive programs, and mail-service pharmacy.”
In 2012, 84 percent of prescriptions in the U.S. were filled with generics, according to IMS Health.
Key findings in the GPhA report include:
- Over the 10-year period 2003 through 2012, generic drug use has generated more than $1.2 trillion in savings to the health care system.
- In 2012, generics saved the U.S. health system $217 billion, up from $188 billion in 2011.
Additional findings include:
- Retail market overall savings was $931 billion over 10 years.
- Commercial third-party payers saved $552 billion over 10 years.
- Medicare Part D, federal benefit enrollees saved $301 billion over 10 years.
- Seniors enrolled in Medicare Part D saved $180 billion over 10 years.
- Medicaid beneficiaries receiving prescriptions from retail outlets saved $96 billion over 10 years.
- Patients paying out-of-pocket/uninsured patients saved $78 billion over 10 years.