Generic Drugs Could Have Saved $20 Billion in Health Care Costs...

(search ), according to a new report by Express Scripts Inc., a pharmacy benefit manager.

The study examined six major classes of drugs including (search ) and (search ) and was based on a sample of roughly 3 million Express Scripts commercial members. Government programs such as Medicaid, the health plan for the poor, were not included in the study.

Express Scripts estimates that if more actions aren't taken to increase generic use, $24 billion in saving will be lost this year and $25 billion will be left on the table in 2006. It said that on average a generic drug costs about $60 less per monthly prescription than a brand name medicine. Consumers also pay lower copayments for generics, saving $10 or more per prescription by forgoing a brand name medicine.

Pharmacy benefit managers administer drug plans and organize the purchase, dispensing and reimbursement of medicines for health insurers or other large purchasers of health care such as employers and unions. Express Scripts does earn more money from its clients if it lowers their drug costs.

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Submitted by admin on Tue, 2005-10-25 17:00.