Free US generic drug program ends

17 December 2007

A marketing program by the Independence Blue Cross health insurer in Pennsylvania, USA, has ended, with the organizers claiming success in encouraging people to switch from branded to generic drugs. The original scheme, which involved zero co-payments for generic drugs to beneficiaries, was originally launched in January this year and extended in March.

Karen Burnham, a spokeswoman for Independence, told the Philadelphia Inquirer that the proportion of generic prescribing increased from 52% to 58.3%. She added that about one in three of the insurers 3.2 million customers saved about $50.0 million in co-payments.

Although Independence will continue to offer co-payment waivers as an option for employer-provided health plans, the insurer believes that a $20 discount for generic co-payments will be more cost-effective, whilst still providing a sufficient incentive for customers.

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