Friday, 16 February 2007
Seniors Saving Billions With Generic Drugs
Medicare Part D beneficiaries are using generic drugs at rates higher than expected, according to the Centers for Medicare & Medicaid Service. Many health officials are excited about the increased generic drug usage, which could save billions of dollars on drug spending. The move toward generics will also lower premiums for beneficiaries.
“The high generic dispensing rate in Medicare Part D, after only one year, is a testament to the collaborative efforts of patients, clinicians, and policymakers to expand access to clinically proven, cost-effective prescription drugs,” said prescription drug expert Mark Merritt.
If the generic drug trend continues, Medicare Part D stands to cut costs substantially. Even a 5% increase generic drug use could reduce Medicare drug spending by $58 billion between 2007 and 2015.
“Increased generic drug utilization is helping to keep Part D premiums and program costs lower than originally forecast and is helping to prevent seniors from falling into the ’donut hole’ coverage gap,” Merritt also said.
The ’donut hole’ refers to a coverage gap in Medicare Part D prescription drug plans. Once beneficiaries reach $2,250 in drug benefits, they will receive no coverage until their individual spending reaches $3,600. That leaves seniors responsible for $1,350 in out-of-pocket costs.
Consumer advocates see the data as a call for policymakers and lawmakers to continue the expansion of lower-cost generic drugs and make it easier for safe, effective generic drugs to enter the market.
Technorati Tags: Senior Insurance Prescription Drugs
