ORLANDO, Fla., May 19 /PRNewswire-FirstCall/ -- As the severity of a medical condition increases, the likelihood that consumers will choose a generic medication dramatically decreases -- just one of several revealing consumer attitudes reflected in an independently conducted generic medication survey released today at the Medco Health Solutions, Inc. 2004 Drug Trend Symposium.
According to a random household survey of 1,000 adult consumers nationwide conducted in April by marketing research firm ReedHaldyMcIntosh for Medco, 79 percent of people would use generic medications to treat minor conditions such as a cold or the flu, and 76 percent of people would use a generic to treat heartburn. However, only 56 percent agreed to use generics to treat asthma and only 52 percent would use generics to treat diabetes. For treating heart disease, the number of people who would use a generic medication fell to less than 50 percent (47 percent) -- despite the fact that generic medications are the medical equivalent of their brand name counterparts, at a savings of up to 70 percent.
“The results of this survey underscore -- with stunning clarity -- that consumers need more education about the efficacy, safety and cost savings associated with generic medications,” said Dr. Robert Epstein, chief medical officer, Medco. “With $30 billion in brand-name medications scheduled to go off patent in the next three years, the potential savings for plan sponsors and consumers is significant.”
Generic medications contain the same active ingredient, in the same strength and dose, as their brand-name equivalents and must meet the same FDA standards as the original. In fact, many of the generics are manufactured by the same companies that created the brand name drugs. The Generics Pharmaceutical Association (GPhA) estimates that for every additional 1 percent increase in generics drug usage, the country could save $1.16 billion a year in prescription drug costs.
“With our health plans and employers we’ve seen that every 2 percent increase in generic medication use plan sponsors and employers can save 1 percent of overall cost,” continued Epstein. “In addition, most members can achieve significant savings, as plans often provide a lower co-pay for generics.”
Brand-Name Drivers
The survey offers some insights into factor that drive brand name use. One survey result spoke directly to the power of advertising: 57 percent of respondents said they would be more likely to use a generic medication if they saw it advertised, despite the fact that generics have a lower cost, in part, because there is very little, if any, money spent on advertising generics.
In another sign of the power behind the brands, the survey also found that when presented with the same co-pay for using either a brand name medication or a generic, 59 percent would choose the brand, while 33 percent would choose the generic (the remainder were undecided). As the cost of the co-pay rose for the brand name medication, people were more likely to choose a generic, underscoring the importance of designing drug plans that take advantage of cost-saving opportunities for both employers and employees.
The survey results were compared to the findings of a Generic Medication Survey conducted in 1999, and revealed that the percentage of adults considering themselves very knowledgeable about generics has nearly doubled in the last five years, to 19 percent from 11 percent in 1999. Women were not only much more likely than men to say they are knowledgeable about generics (72 percent of women said they were knowledgeable, versus 55 percent for men), but 83 percent of women were also more likely to take a generic drug prescribed by their doctor, versus 78 percent for men.
The age group that appears to be the least knowledgeable about generics is also the group that takes the most medications -- seniors over the age of 65. The survey found that compared to people ages 45-64, seniors were less likely to know that generic drugs are made from the same active ingredients as brand name drugs, that they are regulated by the FDA, and that they are generally just as effective as brand name drugs.
“The survey results indicate that there are steps plans sponsors and employers can take to encourage generic use in an effort to lower costs,” continued Epstein. “Programs that educate consumers about the safety and efficacy of generic medications and the cost savings associated with using generics can be greatly effective. Offering financial incentives, such as lower co-payments, may also help increase generic drug use.”
Medco’s award-winning Generics First(R) generic drug sampling and education program has been instrumental in increasing the use of generic medications. The company’s recently launched Generic Drug Resource Center helps its members better understand the efficacy, safety and cost savings associated with generic drug use.
About Medco
Medco Health Solutions, Inc., a leading pharmacy benefit manager with the nation’s largest mail order pharmacy operations, assists its customers to moderate the cost and enhance the quality of prescription drug benefits provided to members nationwide. Its customers include private- and public- sector employers and healthcare organizations. Medco is traded on the New York Stock Exchange under the symbol MHS. On the Net: http://www.medco.com/.
This press release contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward- looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this presentation should be evaluated together with the risks and uncertainties that affect our business, particularly those mentioned in the Risk Factors section of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.
Medco Health Solutions, Inc.
CONTACT: Ann Smith of Medco Health Solutions, Inc., +1-201-452-0487,ann_smith@medco.com; Kevin Lamb or Janet Schiller of Coyne Public Relations,+1-973-316-1665, for Medco Health Solutions
Web site: http://www.medco.com/