Chains Show Support for Generic Dispensing Incentives

While state and federal health officialsstruggle to hold down soaringMedicaid drug spending, communitypharmacy leaders are urging Congressto explore cost-cutting techniques thatpromote more rational prescriptiondrug use.

In testimony before the House HealthSubcommittee, National Association ofChain Drug Stores President Craig Fullersaid that government cost-containmentefforts should "reward behaviors thatadvance sound policy objectives." Specifically,Fuller called on federal and stateMedicaid officials to adopt payment policies"that provide support to pharmaciesthat dispense generic drugs wheneverpossible" —an approach that he saidwould result in "ultimately saving Medicaidbillions of dollars."

Fuller also recommended the use oftiered copayments as an effective toolfor increasing generic drug utilization."By encouraging increased generic use,pharmacies can save Medicaid between$45 and $100 on each prescription,"Fuller told Congress.

Mr. Rankin is a freelance medical writer.