On Wednesday, September 17, 2014, The American Journal of Managed Care published an editorial by Dr. A. Mark Fendrick, V-BID Center Director, and Dr. Gerry Oster, Vice President of Policy Analysis Inc.

The piece, also featured in the New York Times Upshot, details a recent pharmacy benefits management trend in which several prominent health plans are forcing consumers to assume more of the burden of their health care costs by placing generic drugs into “preferred” and “non-preferred” tiers.  This parallels the split that one typically finds with branded drug pricing.  As a result, many patients now face substantially higher co-pays for various generic drugs — many of which are recommended as first-line treatments for several chronic conditions and auto-immune diseases.

The authors contend that the designation of these generic drugs as “non-preferred” based on cost alone may result in lower rates of medication and treatment adherence, which runs counter to ongoing efforts by payers and providers to improve health outcomes.

The editorial press release, along with additional media coverage including the Wall Street Journal pharmaceuticals blog, is available. Please feel free to contact us with any comments or questions.