Does the increase in prescription drug costs have anything to do with the advertisements for prescription drugs running on television and in magazines?
A YES. The cost for research, development and now advertising is passed along to the consumer. Thus, when a PEEHIP member requests a specific name brand drug, the member pays the co-pay while PEEHIP pays the balance of the cost. The average difference in cost between generic and preferred brands is 232% and rising. In other words, the total cost of a preferred brand may be $61.33 while the generic brand is $18.45. Although, there may not be a generic equivalent to some name brands of drugs, PEEHIP members are encouraged to request generic if available. Once the patent on certain brand name drugs expires, a generic brand will be offered. Prescription drugs are the fastest growing component in the PEEHIP hospital medical plan. Q I am getting a divorce and my spouse is currently covered with my family PEEHIP coverage. If the court orders me to pay for my spouse’s health insurance, can I continue the coverage with my family plan? A NO. PEEHIP is not bound by court order to insure dependent
