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Study Shows Incentive Program Increases Generic Drug Use

Posted on: Wednesday, 28 February 2007, 12:01 CST

A program that promotes greater use of generic medications, by waiving patient copayments for a limited time, is proven effective, according to a report released by Express Scripts, a leading pharmacy benefit manager.

The report validates the effectiveness of the program -- known as Zero Dollar Copay -- in moving a significant number of plan members to lower cost, equally effective generics. Julayna Meyer, vice president of research and trend management says, "Today's healthcare consumers understand the importance of making a smart choice with regard to prescription drugs and respond well to the incentive that has been made available through this program."

The program is for patients on non-formulary branded medications and waives the copayment if the member moves to a generic alternative, hence the name "zero dollar." The zero dollar copayment is typically limited to 4-6 months -- usually a value to the consumer of approximately $50 per year.

The study, which focused on a state employer plan using the Zero Dollar Copay program, showed that compared to a control group, a significantly greater number of members who received the zero dollar incentive moved to generic medications for the treatment of gastrointestinal, high cholesterol, high blood pressure and arthritis conditions. The anti-cholesterol therapy class produced the highest conversion rate of 12.6 percent compared to the control group of 4.7 percent.

Express Scripts' Zero Dollar Copay program was awarded the 2005 Rx Benefit Innovation Award by the Pharmaceutical Care Management Associations (PCMA) in recognition of its creative approach to prescription-drug benefit program management.

Express Scripts estimates that plan sponsors and members could save up to $22 billion annually if generic usage reaches full clinical potential. Meyers notes, "This program helps increase generic utilization and saves clients and members money by promoting cost-effective therapy."

Express Scripts is a leader in consumer behavioral changes involving the use of generic drugs. Since 2001, generic drug utilization at Express Scripts has grown from 42.1 percent of all prescriptions to a record 59.7 percent.

For a copy of the research study go to: http://www.express-scripts.com/ourcompany/news/outcomesresearch/ onlinepublications/ (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists).

About Express Scripts, Inc.

Express Scripts, Inc. (Nasdaq: ESRX) is one of the largest pharmacy benefit management (PBM) companies in North America, providing PBM services to over 55 million patients through facilities in 13 states and Canada. Express Scripts serves thousands of client groups, including managed-care organizations, insurance carriers, third-party administrators, employers and union-sponsored benefit plans.

Express Scripts provides integrated PBM services, including network pharmacy claims processing, mail pharmacy services, benefit design consultation, drug utilization review, formulary management, disease management, medical and drug data analysis services, and medical information management services. The Company also provides distribution services for specialty pharmaceuticals through its CuraScript specialty pharmacy. Express Scripts is headquartered in St. Louis, Missouri. More information can be found at http://www.express-scripts.com.

Source: Business Wire

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