PEP, July-Aug 2004: Preferred and generic drugs save you money.

Co-payment changes in union drug plan
Retail: 30 day supply		Drug type	Mail order: 90 day supply
Current co-pay	New co-pay July 1, ’04	a	Current co-pay	New co-pay July 1, ’04
$ 3 $ 8 $15	$ 5 $15 $35	Generic Brand preferred Brand non-preferred	$ 6 $16 $30	$10 $30 $70

With co-payments in the prescription drug benefit increasing effective July 1, members and eligible retirees who use brand-name drugs and want to reduce their expenses should consider using generics or medications from the preferred list. By using a preferred drug rather than another brand-name medication that is not on the list, you can cut your co-payment from $35 to $15.

The out-of-pocket savings are even greater if you use the generic equivalent of a brand-name drug that is not on the preferred list. Individuals who purchase a non-preferred drug when a generic counterpart is available are charged the difference between the cost of the preferred drug and the generic plus the $35 co-pay.

Rosaria R. Esperon, administrator of the DC 37 Health and Security Plan, also recommends that members and eligible retirees ask their physicians for free samples of their medicine before accepting new prescriptions.

“Because the pharmaceutical market is so big, you should not have any problem replacing a non-preferred brand-name drug with a medically equivalent preferred or generic counterpart,” she said.

Pharmacy benefit management companies like Express Scripts Inc., which administers the DC 37 drug plan, use their purchasing power to leverage discounts from pharmaceutical companies.

Using the preferred list, known also as a “formulary,” brings those savings to members and retirees through lower co-pays. As prescription drugs eat up a growing portion of DC 37 Health and Security Plan expenditures on benefits, the plan’s trustees decided earlier this year to increase the co-pays on July 1.

A mailing from the plan urged users of non-preferred brand name drugs to discuss the possibility of switching to generics or preferred brand-name drugs with their physicians.

The July 1 co-pay increases are listed in the chart. The mail-order program is mandatory for maintenance drugs.