Brand-Name Drugs Drive Costs in Maine; Blue Cross & Blue Shield Promotes Generics in Michigan

From 1999 to 2000, use of prescription drugs among 10 Maine businesses increased by 6%, while overall drug costs rose at twice that rate, mostly due to increased use of newer and costlier brand-name drugs, according to a study by the Maine Health Information Center, the Portland Press Herald reports. The study looked at drug costs for 10 major employers in the state that are members of the Maine Health Management Coalition, a group of 32 businesses and health organizations. Within the study's time frame, use of brand-name drugs among study subjects increased 9% and use of generic medications dropped 1%. Overall, the employers spent $36.1 million on prescription drugs for their employees, and their drug costs increased 18% from 1999 to 2000. Further, spending on prescription drug costs accounted for 46% of the overall increase in the 10 employers' combined medical costs, the survey found. The Press Herald does not report the overall increase (Turkel, Portland Press Herald, 4/4). The full study is available online.

Generic Use Encouraged
To encourage use of generic medications rather than brand-name drugs, Blue Cross & Blue Shield of Michigan is providing pharmacists with an incentive payment for every generic prescription they dispense beyond a certain level, the Detroit Free Press reports. The incentive payments are part of the insurance company's campaign, which has the slogan, "Generic drugs, the unadvertised brands," to "neutralize" the $15.7 billion the drug industry spent to advertise brand-name medications during 2000. Blue Cross is hoping to emphasize that choosing generic medications could save beneficiaries as much as 70% off their drug costs. Using generic instead of brand-name drugs saved Blue Cross beneficiaries $3.4 million over the last three months of 2001, the Free Press reports. Blue Cross intends to launch a public awareness advertising campaign at the end of April that will feature drug stores that have increased the number of generic medications they dispense (Norris, Detroit Free Press, 4/6).