A nonprofit independent licensee of the BlueCross BlueShield Association Creating Savings with Generic Medications Over the past several years, Excellus BlueCross BlueShield has actively pursued a number of initiatives that have helped to increase the use of generic medications. Our overall “generic fill rate” increased from 37 percent in 1999 to nearly 69 percent at the end of 2009*. This outcome is substantial. For every one point increase in generic fill rate, overall drug costs may be reduced by up to two percent. Across our book of business, that one point increase could translate into more than $17 million in savings. Member Education and Outreach n We use targeted, direct-to-member communications to notify members about safe, effective opportunities to use a generic in place of the expensive brand and to help them understand the savings. - We send messages specifically targeted to members who could save by switching from a brand-name drug to a generic. - Up to 22 percent of the members who receive informational mailings voluntarily switch from their brand-name medication to a cost-saving generic. The result: Plan sponsors save an average of $110 to $120 for each 30-day generic prescription filled - and members save by lowering their out-of-pocket cost. - Physicians report an increase in patient requests for generics and lower-cost alternatives following our targeted member mailings. n Blue on demand Web tools - Our Web site, www.excellusbcbs.com, has a Generic Savings Calculator that demonstrates how much can be saved when choosing a generic over a brand. For example, a 30-day supply of Zocor, a popular brandname cholesterol medication, has a retail price of approximately $164, compared with an average cost of under $6 for a 30-day supply of simvastatin, its generic equivalent. - The Medication Search feature allows members to search our formularies for generic and lower-cost alternatives to branded medications. - Helpful Member Information and brochures can be viewed and downloaded online. - The Ask the Pharmacist feature provides members with an opportunity to e-mail a question about medications to one of our clinical pharmacists. Popular questions and answers are posted to the website. * Based on drug utilization data from FLRx that provides pharmacy benefit management services for more than 1 million people in upstate New York Excellus BlueCross BlueShield “Generic Fill Rate” Physician Education and Outreach Employer Group Education and Outreach n We issue Physician Tip Sheets to keep doctors and clinical staff informed of generic prescribing opportunities, providing information on ways to safely and effectively use generic medications in place of clinically equivalent expensive brands. n Through employer and employee communications, we promote the use of cost-effective generics. In addition to sending targeted mailings, we regularly produce customized employee messages for employer groups. n We provide Prescribing Profiles and Dispensing Summaries to all participating physicians. Profiles are produced quarterly and physicians receive an annual summary. These reports show the physician’s actual generic prescribing rate compared to his/her peers and the targeted performance for the specialty in key drug classes. This information helps physicians identify opportunities to increase their generic prescribing rates. n We provide Employer Reports to help companies monitor their generic use rate. n Through benefit design consultation and program recommendations, our collaborative efforts help employers reach their generic fill targets. n Our dedicated Pharmacy Services Consultants work with employer groups to provide employee education and support. For example, pharmacy services consultants conduct “lunch and learn” sessions for employees, providing information on generic alternatives and cost-saving programs. n “Rx Facts for Employers” is a free newsletter that highlights cost-saving initiatives with a focus on generic opportunities. n Cost saving tools are available on our Web site for employer groups to download and use. n We publish Rx Facts, a free, clinical newsletter. The “New Drug Approvals” column includes updates on the release of new generic drugs. n As part of the e-prescribing community, we provide benefit, formulary and medication history access to authorized physicians. Electronic prescribing is a safe, efficient and cost-effective technology that improves member safety, reduces costs and eliminates wasteful paperwork. E-prescribing provides real-time, member-specific information, allowing physicians to prescribe the most medically appropriate and cost-effective medication at the point of care before prescriptions are electronically transmitted to the pharmacy. n Our clinical pharmacists are regularly invited to speak to physician associations and community organizations on the topic of generic drug use. Our Generics are Real campaign raises awareness about the benefits of generic drugs. Since its launch in 2005 the GFR increased nearly 16 points, saving approximately $260 million for plan sponsors and $86 million for members. Clinical Programs We work closely with physicians in our community to encourage more generic prescriptions where appropriate. Our programs promote the use of clinically sound generics and cost-effective therapeutic alternatives in several drug classes. In targeted classes we recommend the generic as first line therapy and the lower-cost brand as second line therapy. This strategy helps manage the rising cost of prescription drugs and lower members out-of-pocket prescription drug expenses. Our Generic Trial Program gives our members their first prescription of selected generic medications at no cost. The free trial provides members with an opportunity to save hundreds of dollars per year in out-of-pocket prescription costs if they continue with the generic medication. The program offers generic trials in several frequently prescribed drug classes: high blood pressure, high cholesterol, heartburn and depression. Nearly 13,000 new generic trial prescription are written each month representing B-1949/4393-10FLRx significant savings. Members save tens of thousands through waived and reduced copays and plan sponsors save approximately $100 per generic prescription filled. The Generic Advantage Program encourages value when selecting prescription drugs. If members purchase a brand name medication when there is a generic equivalent available, they pay additional costs. Future Savings Excellus BlueCross BlueShield continues to further increase generic fill rates through new and expanded initiatives. Generics have unique value. They provide an opportunity to lower overall cost to our members and our employer groups while maintaining access to quality medications with proven safety and effectiveness. Excellus BlueCross BlueShield is committed to providing members, employers, physicians and pharmacists with the tools and resources they need to maximize the savings available through the increased use of generic drugs. It’s another way we bring value to the customers we serve every day.