The expanded use of generic drugs — up five percentage points from 2007 to 2008 — among Blue Cross and Blue Shield Plan members has led to at least $2.5 billion in savings, according to the company.

In a recent survey, BCBSA analyzed the prescription use of 51 million subscribers in 32 of its companies. The findings highlight the value of promoting generic drug utilization.

“Health care spending growth in 2007 slowed to its lowest rate since 1998, driven in large part by steady increases in generic dispensing rates,” said John Frick, director of pharmacy initiatives for BCBSA, at a press conference announcing the results.

Joel Owerbach, Excellus BCBS’s vice president and chief pharmacy officer, points to the need for generic drug promotion in a 2007 survey that found 35% of respondents in upstate New York had never asked a physician if a generic alternative was available. Additionally, 55% said their doctor had never asked them if the cost of a drug was a concern for them.

Excellus launched its “Generics are Real” campaign in 2005 to inform consumers about the benefits of generic drugs through television commercials, online programs, print advertisements and partnerships with employers.

Benefit designs can be manipulated to promote generic drug use by reducing the cost-sharing burden on patients opting for generics over name-brand prescriptions, as well as waiving copays for generic drugs altogether, said Frick.

Birds Eye Foods, a national company with 3,500 people covered under its benefits plan, is a corporate sponsor and participant in Generics are Real. Already above the national average for generics usage, Birds Eye has saved approximately $200,000 since the program started, said Diane Mohorter, senior benefits manager.

“For every one point increase in generic fill rate that we have, our drug benefit plan experiences a savings that adds up to over $50,000 each year,” said Mohorter. “Our employees share in that savings. This equates to a full-time, regular employee who’s benefit eligible and their whole compensation package.”

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