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August 2009 |
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Generic Utilization Part 2 Every brand name medication has a generic name, but not every branded medication has a generic version currently available in the marketplace. So, while generics can save money, it’s not always possible for your pharmacy benefit plan members to use the generic equivalent of a brand name product. However, generic alternatives can be the key to achieving generic utilization savings. Active ingredients in brand name medications are protected by patents. The 20-year patent protection period starts when a manufacturer files a New Drug Application (NDA) with the U.S. Food and Drug Administration (FDA). Because an NDA must be filed before clinical trials begin, a brand medication typically has about seven to 12 years of protection remaining once it becomes available by prescription to consumers. Until a patent expires, generic pharmaceutical manufacturers are not supposed to introduce a generic version of the brand name medication. A generic medication is a pharmaceutical product produced and distributed without patent protection for the active ingredient. Like brand medications, all generics must gain FDA approval. However, the approval process is shorter for generics than for brands, which contributes to why generics cost significantly less than brand medications. In prescription benefit plans, there are two ways to think about how generics are related to brand name medications:
For example, in the cholesterol-lowering statin class, Zocor is a brand name medication. The generic equivalent of Zocor is simvastatin, which was introduced to the market in 2006. Lescol/XL is also a branded statin medication, but no generic equivalent is currently available. Because simvastatin and Lescol/XL are both statins, simvastatin could be considered as a generic alternative to Lescol/XL. Understanding the relationship between brands, their generic equivalents and generic alternatives can help to achieve optimal plan and member savings. To drive generic utilization, Innoviant offers a number of programs designed with these relationships in mind. For more information, contact your Innoviant Account Manager. In Part 3 next month, we’ll take an in-depth look at generic program options. Legislation Update In a July 31 vote, the U.S. House Energy and Commerce Committee granted 12 years of patent protection to high-tech drugs used to combat cancer, Parkinson's and other deadly diseases. The committee added this amendment to broader healthcare legislation making its way through Congress. The measure would also allow “evergreening,” which is a practice pharmaceutical companies use to extend the length of their patent protection by making small adjustments to their products. Examples of evergreening include creating extended-release versions and introducing additional therapeutic uses. President Obama and some Democrats, including energy committee chairman, Rep. Henry Waxman (D-CA), along with AARP and other consumer groups have pushed to make generic versions of complex biologic medications available sooner, saying consumers would have better, faster access to cheaper generics, which would also help reduce the country's healthcare costs. Timeframes of five to seven years had been proposed by some groups in opposition to the 12 years lobbied for by pharmaceutical and biotech groups. A Senate committee also agreed to the 12-year period as part of a sweeping healthcare system overhaul bill. If Congress passes this legislation, the measure will likely become law. Important Retiree Drug Subsidy (RDS) Information As a reminder for all RDS clients with a plan year beginning January 1, 2010: Subsidy applications are due to the Centers for Medicare and Medicaid Services (CMS) by September 30, 2009. New applications must include a full list of retirees and may only be submitted by one representative.
Through Client Connection and Innoviant.com, you have access to educational content specifically written for members that you can adapt to meet your unique member communication needs. For August, we’re spotlighting two national health observances Cholesterol September is National Cholesterol Education Month, but it’s always the right time to get your blood cholesterol checked and take steps to lower it if it’s too high. The following resources can help you learn more about cholesterol and choices you can make to reach your personal cholesterol goals.
Pain Awareness This September marks the eighth annual National Pain Awareness Month, yet many Americans do not recognize pain as a significant health issue – unless you’re personally dealing with pain management issues as a patient or caregiver. Here are some tools you can use to better understand the role pain plays in many peoples’ lives.
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LOOKING AHEAD |
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Office Closure Our offices will be closed on The Innoviant Customer Service
September Health Observances Health observances are days, weeks or months devoted to promoting particular health concerns. You may choose to use these special times The following observances are recognized by the U.S. Department of Health and Human Services for the month of September. For more information about the observance or to obtain support materials, please contact the sponsoring organization directly via the websites provided.
Source: 2009 National Health Observances, National Health Information Center, Office of Disease Prevention and Health Promotion, U.S. Department of Health and Human Services, Washington, DC. |
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