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May 28, 2008

Generic drug options save considerable health-care costs

Name-brand prescriptions swell costs for patients

By JEFF MEYERS

PLATTSBURGH -- Choosing generic drugs over brand names can provide patients with the same benefits but at a reduced cost.

And that saves both consumers and the health-care industry a significant amount of money.

In a recently completed survey of prescription-drug usage in upstate New York, researchers found that the 10 most widely used brand-name drugs in 2007 represented almost 20 percent of the total cost spent on more than 3,000 drugs.

"That is more than $1 billion in spending," said John Giacovelli, director of pharmacy industry relations for Excellus BlueCross/BlueShield, which conducted the survey. "There are generic equivalents out there that can provide a great opportunity for savings."

RISE IN SPENDING

The report showed that upstate New Yorkers spent $5.5 billion on prescription medications, an increase of $210 million from 2006 and more than $1 billion more than in 2003.

"That reflects the growing availability and use of prescription drugs, as well as a steep rise in the price of commonly used drugs," Giacovelli said.

"What we're trying to do is raise awareness in respect to the cost of prescriptions and how generics can impact that cost."

Lipitor, a drug used to treat cholesterol, topped the 2007 list at just over $250 million, more than double the No. 2 drug, Advair, used for asthma treatments, which was at $116 million.

Brand-name drugs to treat high blood pressure, high cholesterol and heartburn accounted for 26 percent of the total spent on prescriptions.

GENERIC VERSIONS

Two of the top 10 brands, Protonix (No. 3 on the list) and Fosamax (No. 9), have recently become available in generic form.

Pantoprazole, used to treat heartburn, can replace Protonix, and Alendronate, used for osteoporosis, provides the same treatment as Fosamax.

When drug companies develop new medications, they have patented rights to that drug for an average of 11 years. However, once the patent runs out, generic equivalents can be manufactured. The generics contain the same active ingredients but cost between 30 and 80 percent less than the brand name.

"Both these generic drugs became available in 2008 and provide a good opportunity for consumers to save out-of-pocket money," Giacovelli said.

"Three other drugs (on the Top 10 list) have alternatives or generic equivalents that are in the same therapeutic category or family," he added. "In most cases, these equivalents will do just as good a job but will be significantly cheaper."

For instance, Lipitor itself does not have a generic equivalent, but Simvistatin is the generic drug for another high-cholesterol drug (Zocor). Both Prevacid and Nexium, drugs used to treat heartburn and ulcers, have plenty of generic options, including some over-the-counter medications.

ASK YOUR DOCTOR

"We're encouraging people to ask their physician or pharmacist if there is a generic alternative available," Giacovelli said. "Typically, there will be a family of drugs that offers equivalents to the brand names.

"Everyone wins with generic opportunities," he added. "And it's not just a cost or money issue. Studies have shown that people with high out-of-pocket expenses are less likely to comply (with physician prescriptions)."

According to the New York State Pharmacy Dispensing Law, pharmacists must fill prescription drugs with generic brands when available unless the physician specifically requests the brand name.

However, patients can become more proactive in their care by checking with their doctors to see if there is an option in the family of drugs available when there's generic for that specific drug, Giacovelli said.

jmeyers@pressrepublican.com

Top 10 drugs
Here's a list of the Top 10 drugs purchased in New York state in 2007 and the total amount spent on them:
1. Lipitor, to treat cholesterol ($241,520,000).
2. Advair, to treat asthma/COPD ($116,280,000).
3. Protonix, to treat heartburn/ulcers ($107,680,000).
4. Prevacid, to treat heartburn/ulcers ($103,580,000).
5. Plavix, to treat heart-stroke prevention ($96,710,000).
6. Enbrel, to treat arthritis/psoriasis ($90,850,000).
7. Nexium, to treat heartburn/ulcers ($85,540,000).
8. Singulair, to treat asthma/allergies ($79,880,000).
9. Fosamax, to treat osteoporosis ($77,890,000).
10.Effexor XR, to treat depression ($74,330,000).

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