Specialty Rx Prices Continue to Climb
The prices of specialty drugs most commonly
used by Medicare Part D beneficiaries
have risen faster than inflation
every year since 2004. In 2007, the price
hike was 8.7%, or nearly 3 times the general
rate of inflation, according to a report
recently released by the AARP.
Specialty drugs are used to treat complex,
chronic conditions and are currently
among the most expensive on the
market, with prices that can range from
$5000 to >$300,000 per year, the AARP
noted.
"The skyrocketing cost of specialty
drugs is especially tragic for those suffering
from diseases like cancer and
multiple sclerosis," said John Rother,
AARP executive vice president of policy
and strategy. "These drugs can provide
comfort and hope to these individuals
and their families, but even the most
miraculous drug is useless if a person
can't afford to take it."
The Generic Pharmaceutical Association
(GPhA) agrees and believes that
Congress
needs to give the FDA the
authority to create a pathway for biogenerics.
"Without competition, there
can be no hope of relief for patients
who need these and many other biologic
products," stated Kathleen Jaeger,
president and chief executive officer of
GPhA. "This study proves what we have
consistently stated—generic competition
creates substantial savings for patients."
Flat-Rate Generics Popular, Survey Finds
The rise of flat-rate generic prescription
pricing plans that charge a fixed price is
creating higher satisfaction for individuals
at "brick and mortar" pharmacies who
participate in these programs, according
to the 2008 National Pharmacy Study by
JD Power and Associates.
Approximately one quarter of all pharmacy
patients are taking advantage of
these discount plans, according to the
study, with the highest numbers drawn
from patients aged 44 and older who
especially like the predictability of low
prices for generic prescriptions, study
analysts noted.
The study also found that health insurance
and Medicare Part D have driven
more seniors to use mail-order pharmacies
to obtain medications for managing
chronic conditions. Patients aged 65 and
older requested 26% of mail-order prescriptions
in 2008. For more information,
go to www.jdpower.com/healthcare
.
Kudos for CA E-pedigree Law
The Generic Pharmaceutical Association
(GPhA) is praising the passage of legislation
that will establish an electronic
pedigree (e-pedigree) system in California
aimed at helping to maintain the security
of the drug distribution chain against
counterfeit drugs.
GPhA has been working with a coalition
of members throughout the entire
drug supply chain to develop solutions to
strengthen the pharmaceutical tracking
system. The coalition has been conducting
pilot studies to determine what systems
would be feasible for patients and
the health care system.
Under the California law, brand and
generic manufacturers would commence
providing e-pedigree and serialization of
their products in 2015. "This implementation
will help manufacturers [in] establishing
an electronic track and trace system,"
noted Kathleen Jaeger, GPhA president
and chief executive officer.
"Doughnut Hole" Leads Seniors to Generics
A recent study by Medco Health Solutions
found that, when patients being treated
for high cholesterol hit Medicare Part D's
"doughnut hole," they were twice as likely
to abandon their medications. Those
taking brand name cholesterol-lowering
statins were most at risk of stopping
therapy once they hit the coverage gap.
The study shows that, during 2007,
the rate of patients who suspended
generic statin treatment was 20% lower
than those on a brand name medication.
The analysis also revealed that reaching
the coverage gap stimulates the use of
generics among all Medicare recipients.
During the initial phase of the benefit,
when the plan provides drug coverage,
one third of the medications used daily
by beneficiaries were generics, and two
thirds were brand name drugs. Once
beneficiaries reached the coverage gap,
however, generic use rises to 71%, and
brand name use falls to 29%.
In light of these findings, Generic
Pharmaceutical Association President
and Chief Executive Officer Kathleen
Jaeger urged physicians, health care providers,
and payers to educate patients
about the availability and value of generic
medicines.
"It is a tragedy that our seniors are forgoing
taking needed medicines because
they can no longer afford them. Generic
medicines can stretch scarce resources
and provide a life jacket for those seniors
who are at risk of stopping their medication
when they reach the doughnut
hole," Jaeger said.
Inside the Issue
