IBC No Pay Copay Promotion to Close Year End – Members Endorse the Use of Generics while Generic Utilization Increases

In January of 2006, IBC introduced the “No Pay Copay” promotion with the following goals in mind.

1. To increase awareness of generic drugs and

2. To encourage members’ use of generics

As a result of preliminary findings, IBC then extended the program to run through the end of 2007 and expanded it to include members with integrated prescription drug coverage. This promotion was just one of the initiatives in IBC’s overall strategy to control the rising costs of prescription drugs for our customers.  As the promotion is coming to a close at the end of 2007, IBC has seen a significant increase in the use of generic drugs: 

• Due to the enhanced formulary management, the greater number of generics available for blockbuster drugs for which the patent has expired such as Welbutrin XL ®, Norvasc ®, and Ambien TM, and the success of “No Pay Copay”, they have seen a 12 percent increase in generic utilization among it’s commercial members. 
• Since October 2006, the use of generics by IBC commercial members has increased six percentage points from 52.1 percent to 58.3 percent.

The “No Pay Copay” promotion has been extremely well received by the IBC membership

• IBC has waived co-payments for more than 5.6 million generic prescriptions.
• A recent survey by IBC of members who have IBC drug coverage shows members are confident using generic drugs – 75 percent of those surveyed believe that generics are as safe and effective as their brand-name equivalents. 
• When asked whether they would consider generics in the future, 87 percent of members surveyed indicated they are likely to ask for a generic drug when the No Pay Copay promotion ends.

HOW THIS AFFECTS YOU AS AN EMPLOYER
The results of the “No Pay CoPay” promotion reinforced the belief that financial incentives “do motivate” employee behavior. Additional findings from the IBC members surveyed showed that the greater the difference in cost between generic and brand co-payments, the more likely members were to make the switch to generics, with more than one in four stating they would switch if the co-payment difference was $20 or greater.

Additionally, more than 80 percent of IBC members surveyed claimed they typically take advantage of any cost savings they can regarding their healthcare choices. More than three quarters of IBC members surveyed said that health insurance companies should encourage their members to use generic alternatives.

WHAT SHOULD I DO NEXT?
Prescription drug spending is increasing at a rate of more than 10 percent a year. Corporate Synergies strongly encourages you to review the various prescription drug programs available through IBC with your employees to see how a greater difference in cost sharing can help manage drug costs and facilitate the transition to generics.

Generic drugs are typically less expensive than brand name drugs while providing the same therapeutic effects as their brand name alternatives. As additional generics come to market and the use of prescription drugs grows, the opportunity to lower healthcare costs becomes even more significant. Promoting the use of generic drugs simply requires better education and awareness of alternatives.

Click here to view IBC’s No Pay Co Pay Promotion Flyer, please forward to your employees with tips on how to become a smart healthcare consumer. Please forward the flyer to your employees.

To learn more about the use of generics drugs and how you can lower your healthcare costs, please contact Corporate Synergies at 1.866.CSG.1719, or click here to contact us today.

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