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Generic drugs can significantly lower employee healthcare costs

Posted by Paula Turnquist

One of the most efficient ways to cut healthcare costs without sacrificing quality is to choose generic prescription drugs over theirbrand-name counterparts. In fact, the former can be as much as 80 percent cheaper than the latter, according to the Generic Pharmaceutical Association. This ultimately adds up to lower bills and long-term costs for both patients and their employers. Generic drugs saved more than $1.46 billion over the previous decade, according to a leading healthcare analytics firm. 

Let us s​how you how you can save 15-30% on your company's total medical  costs. 

Here are more facts:

  • On average, when just one patient changes from a brand-name drug to a generic alternative, the resulting savings amount to about $1,000 annually. 
  • By promoting generic medications, the Kelsey-Seybold Accountable Care Organization (ACO) Pharmacy Quality Initiative (RX-QI) has achieved an estimated savings impact of 12 to 18 percent of total pharmacy costs.
  • KelseyCare's generic fill rates are 12 percent higher than the national average, which ultimately saves our members money and keeps long-term benefit expenses down. 

Too many patients never realize that they could be saving hundreds, if not thousands, of dollars, simply by switching to generic drugs. Due to a lack of comprehensive care, their interests may simply fall through the proverbial cracks. In contrast, KelseyCare establishes close working relationships between physicians and pharmacists, with regular medication reviews. This unusually high level of oversight gives our healthcare providers the opportunity to suggest generic medications in lieu of pricier alternatives. We are proud to say that our plan also strictly prohibits our member physicians from accepting any gifts or other incentives from pharmaceutical companies, to prevent any potential conflicts of interest. 

Generic prescription medications are closely monitored by the FDA, and must prove that they are safe, effective and identical to their branded equivalents in terms of dosage, strength, active ingredient, purity, stability and quality. The off-brand drugs are cheaper because they are not patent-protected and don't have to finance the expensive clinical trials that often must precede medication innovations. Generic prescription manufacturers typically don't pay for advertising and marketing as brand companies do. Additionally, competition in the generic market often drives down prices.

 

Posted by Paula Turnquist

Paula Turnquist joined Kelsey-Seybold Clinic in 2013 as sales manager of Employer Products. She is responsible for the sales of products and services ranging from employer group health plans to Executive Health and Occupational Medicine programs. Paula is originally from the Dallas-Fort Worth area and is a Nursing and Health Care Administration graduate of Texas Christian University in Fort Worth. She has worked in healthcare since 1976 serving major hospital systems, physician practices, venture capital start-ups and large insurance carriers.

Our team is committed to promptly and expertly managing all your inquiries and providing you with the exceptional service that you expect and deserve. To get started, complete a Get a Quote form. We will contact you within one business day or you can call the KelseyCare Get a Quote Line at 713-442-3456.

Topics: healthcare costs, lower

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