PRICE INCREASES FOR GENERICS IMPOSING NEW MARKET ACCESS CHALLENGE- INSIGHTS FROM ANALYSIS OF FORMULARY COVERAGE TRENDS FOR GENERICS

Author(s)

Aggarwal S1, Kumar S2, Topaloglu H1
1NOVEL Health Strategies, Chevy Chase, MD, USA, 2Institute for Global Policy Research, Washington, DC, USA

OBJECTIVES: Generic drugs provide valuable and affordable treatment option for many patients. Traditionally, generic drugs were covered at Tier 1 with low co-pay of $5-10. However, recent triple digit price increases have led to change in access for generic drugs. The objectives of this study were to review and analyze the access trends for generic drugs in U.S. health plans. 

METHODS: Systematic review of the literature was conducted to identify generic drugs with significant price increases. The coverage trends for the selected drugs for all health plans were obtained from CMS. For each plan the data was obtained for the drug name, tier status, deductibles, and type of restrictions. The coverage trends were analyzed by drug name, state level and at a national level. 

RESULTS: We identified five generic drugs whose price was increased by 500-5000% during the last 24 months. We identified 829 coverage policies for the five generic drugs (doxycycline glycopyrrolate, pravastatin, lisinopril, pyrimethamine). Among these plans, only 30% covered these generic drugs at Tier 1. The other 24%, 19% and 23% of the plans covered the selected generic drugs at Tier 2, 3 and 4, respectively. Only 24% of the plans covered these drugs as a ‘generic’, others covered them as non-preferred brand (24%), preferred brand (18%) and preferred generic (28%). The patient co-pay and co-insurance vary significantly across plans and type of formulation. For example, for Doxycycline oral,  few plans (15%) still have low co-pay of $5-10, while majority have co-insurance ranging from 25-47%. Similarly, injectable formulation of Glycopyrrolate has co-insurance of 33-47% (which can lead to a high patient cost share of $1400 per month). 

CONCLUSIONS: This is a first in-depth analysis of access trends for generics with high price increases. This study shows that patient access for some generic drugs has been restricted significantly. 

Conference/Value in Health Info

2016-05, ISPOR 2016, Washington DC, USA

Value in Health, Vol. 19, No. 3 (May 2016)

Code

PHP12

Topic

Health Policy & Regulatory

Topic Subcategory

Pricing Policy & Schemes

Disease

Multiple Diseases

Explore Related HEOR by Topic


Your browser is out-of-date

ISPOR recommends that you update your browser for more security, speed and the best experience on ispor.org. Update my browser now

×