Are companies like Medco forcing consumers to switch to generics for cost reasons?
“We, as a pharmacy benefits manager, administer our clients’ programs. Most payers have plan designs that mandate generic substitution. Most states have automatic substitution to a generic because it’s that important relative to their financial health. Frankly, I have no problem if one of our clients says they want their customers to be able to buy a brand drug if they can pay for that luxury.” Q. Many consumers complain that pharmacy benefit managers (PBMs), like Medco, are strong-arming them to join their mail-order programs when in fact they like that face-to-face interaction with their pharmacists. They say they’re charged higher co-pays if they buy their medicines in-store. Is this fair? “Two specific thoughts. On average, when you include branded and generics in the mix, a client can save 10% across the board by moving from retail to mail. If you have a client spending $1 billion a year in drug coverage, that’s $100 million in savings. That’s a lot of money. The payer does have a
