Save money with generic drugs
November 2011
The recent developments in the generic drug landscape have plan sponsors and their advisors anticipating impacts to their drug programs.
The Co-operators would like to provide your clients with cost-effective benefit solutions.
Some generic drug developments and facts:
- In the next three years, the majority of the top 30 brand name drugs covered under most benefits plans will come off patent.
- Recently British Columbia, Alberta, Saskatchewan, Ontario, Quebec and Nova Scotia, have introduced initiatives to bring down generic drug prices including legislative changes to cap generic drug prices.
- For most provinces, the drug caps are a tiered process, with greater savings over time.
- Obtaining generic drugs at competitive prices could save the private payers up to $600 million per year with the potential for hundreds of millions of dollars in additional savings as more major drugs lose patent protection.1
The reality: it is too early to measure the impact of various generic drug developments to benefits programs, but they have the potential to positively impact the costs to your clients’ drug plans in the future. A few of the trends we are seeing that can drive costs up are as follows:
- an increase in usage of biologics
- an aging population
- an increase in chronic conditions
The good news: there are opportunities for you to help plan sponsors. Plan designs that are limited to covering generic drugs will potentially help your clients realize savings.
Whether your clients have a pay-direct drug card or a reimbursement plan, we want to help your clients better manage their benefits programs. Contact your Group Business Development Manager today to discuss options on plans and help your clients save money.
1. Benefits Canada (2011)
