In 2010, we are pleased to announce that you can save more money under Standard Option when you use generic drugs.
2010 Standard Option Benefits For Generic Drugs
In 2009, we introduced a new benefit for generic drugs under Standard Option when you purchase your medications through the mail service pharmacy. Normally, you pay $10 for each generic prescription fill or refill. Beginning, January 1, 2009, the $10 copayment amount is waived for the first four generic prescriptions filled each calendar year. That's a savings of $40 for you when you use generic drugs.
When you purchase you prescription drugs at a Preferred retail pharmacy, you pay 20 percent of the Plan Allowance for generic drugs and 30 percent of the Plan Allowance for brand name drugs. Effective January 1, 2010, you can start saving on generic drugs when you use a Preferred retail pharmacy.
Your first step to saving on generic drugs is to look at the chart in Section 5(f) in the 2010 Service Benefit Plan brochure (RI 71-005), Preferred Retail Pharmacy Generic Incentive Program. This chart lists certain brand name drugs with the appropriate generic replacement. If you find one of your brand name prescription drugs listed, your next step is to discuss this change with your physician. If you purchase your prescriptions at a Preferred retail pharmacy and you switch from one of the brand name drugs listed in the chart in 2010, your 20 percent copayment will be waived for the first four generic prescription fills or refills in 2010.
The coinsurance amount is waived for the first four generic fills or refills for each drug. So, if you switch from two brand name drugs listed to the generics lists in the chart, the copayment amount is waived four times for each drug switched. Depending on the cost of your brand name drug, the savings gained by switching can be significant.
What Are Generic Drugs?
Maybe you already know you can save money by using generic drugs but don't know enough about generic drugs or how they differ from brand name drugs to make the change. Or maybe you don't think generic drugs are as safe as brand name drugs. Here are some questions and answers that may help you better understand generic and brand name drugs.
What is the difference between generic and brand name drugs? Generally, the generic name of a drug is its chemical name. The brand name is the trade name under which the drug is advertised or sold. Both the generic and brand name of the same drug contain the same active ingredients in the same dosage form. And by law, the generic and brand name drug must meet the same standards for safety, purity, strength, and effectiveness before earning the Food and Drug Administration (FDA) approval.
Are generic medications as safe and effective as brand name drugs? Yes. The FDA mandates that all FDA-approved drugs, both brand name and generic drugs, must be safe and effective. In order to get FDA approval, the generic medication must contain the same active ingredients as the brand name drug and must meet the same strict quality standards. The generic drug must also be the equivalent in strength and dosage to the original brand name drug.
Who makes generic drugs? You may be surprised to know that nearly 80 percent of all generic drugs are made by the same pharmaceutical companies that manufacture the brand name equivalents. The rest are made by companies that actually specialize in the production and manufacture of generic drugs. Regardless of who makes the generic drug, the same commitment to quality goes into the manufacturing of generic drugs as brand name drugs. All generic manufacturing facilities are inspected and approved by the FDA just like facilities that manufacture brand name drugs.
Why are generic drugs less expensive? Creating and marketing a new brand name drug is expensive. Companies that manufacture generic drugs don't have those expenses since they don't pay for the research that led to the discovery of the new drug. That is done by the brand name drug manufacturer. Therefore, the generic medications they produce can cost significantly less for the exact same ingredients, strengths and doses. These savings are passed on to you through lower costs and lower out-of-pocket expenses.
How do I know if a generic drug will work for me? Generic drugs have the same active ingredients, which are the chemicals that make drugs work, as their brand name equivalent. You should talk to your doctor about your medications and discuss whether or not generic drugs are right for you.
How do I find out if there is a generic drug for the brand name drug I'm currently taking? Maybe you have looked at the chart in Section 5(f) and your brand name drug is not listed. You can still save if you purchase your generic drugs through the mail service pharmacy. You can find out if your brand name prescription is available in generic form by calling the mail service pharmacy at 1.800.262.7890 or by going to the Pharmacy feature on our web site and click on the Medco Mail Order Pharmacy site link. You will need a log-in number to access this site, but if you don't have one it is easy to create you log-in just by following the online prompts. Once you have logged in, select the drug information feature.
We hope this information about generic drugs gives you insight on how generic drugs may be right for your prescription drug needs. If so, talk to your physician about switching from brand name drugs to generic drugs. It is that easy to start saving on your prescription drug needs.