More plan sponsors are wondering why they are covering brand name and specialty drugs when there are over 32,000 generic drugs to choose from.
A Texas county decided to cover only generic drugs. They ended up passing the savings to the employees with a $5,000 across the board pay raise, proof employers don’t pay for health insurance, plan members do in the form of lower wages.
Generic medicines work the same as brand-name medicines
“FDA-approved generic medicines work in the same way and provide the same clinical benefit and risks as their brand-name counterparts. A generic medicine is required to be the same as a brand-name medicine in dosage, safety, effectiveness, strength, stability, and quality, as well as in the way it is taken. Generic medicines also have the same risks and benefits as their brand-name counterparts.” SOURCE: Generic Drug Facts | FDA
“It is estimated that 91% of all prescriptions in the United States are filled as generic drugs, with more than 32,000 generic drugs approved by the FDA to date.” SOURCE: Office of Generic Drugs 2022 Annual Report | FDA