Medicare Part D favours generics over brand-name drugs

Generics/Research | Posted 23/10/2020 post-comment0 Post your comment

A recent assessment of Medicare Part D [1] finds that insurance plans favour generic drugs over innovator products. Fewer than 1% of plans covered only the brand-name version of a drug in 2019.

34 AA010660

Medicare Part D is an optional programme to help Medicare beneficiaries to pay for their prescription drugs.

Although some recent press reports suggest Medicare Part D plans encourage the use of brand-name drugs, a recent evaluation [1] finds that the plans in fact rarely cover originator drugs when generics versions are available.

The study examined Medicare Part D formulary coverage and tier placement of more than 1,360 matched pairs of brand-name drugs and generics in order to quantify how often brand-name drugs are preferred in Part D plans.

The results show that, in 2019, the vast majority (84%) of Part D plan-product combinations only covered generics. A further 15% covered both the brand-name and generic versions of a drug.

Although brand-name versions were preferentially covered in a small number of cases (0.9%), beneficiary and Medicare prices were generally low for both the brand-name and generic version of the drug.

Lead author of the study Dr Stacie Dusetzina said: ‘What our study found is, in fact, that Part D plan formularies are designed to favour generics much more often than the brand-name counterpart, which, in the end, saves patients money’.

Overall, the findings show that most Part D plan formularies encourage the use of generics. The authors say policymakers should continue to monitor Part D formulary coverage to ensure that this remains the case.

Related articles
Study reveals link between socioeconomic status and brand-name prescriptions

CMS proposes new measures to rate generic usage

Medicare Part D has no impact on generics prescribing in long-term care

Reference
1. Dusetzina SB, Cubanski J, Nshuti L, et al. Medicare Part D Plans Rarely Cover Brand-Name Drugs When Generics Are Available. Health Aff (Millwood). 2020;39(8):1326-33.

Permission granted to reproduce for personal and non-commercial use only. All other reproduction, copy or reprinting of all or part of any ‘Content’ found on this website is strictly prohibited without the prior consent of the publisher. Contact the publisher to obtain permission before redistributing.

Copyright – Unless otherwise stated all contents of this website are © 2020 Pro Pharma Communications International. All Rights Reserved.

comment icon Comments (0)
Post your comment
Related content
The generics market in Brazil
53 MD002445
Generics/Research Posted 16/07/2021
Backlog of drug patents in Brazil
Patent 1 V13E17
Generics/Research Posted 25/06/2021
Most viewed articles
About GaBI
Home/About GaBI Posted 05/08/2009
EU guidelines for biosimilars
EMA logo 1 V13C15
Home/Guidelines Posted 08/10/2010