CU says generic statins switch "could save Medicare $8B"

Medicare beneficiaries in the USA who are enrolled on the prescription benefit, could save enough money to cover the cost of their insurance premiums if they switched to generic drugs, according to a study published by the Consumers' Union. Users of five commonly-prescribed drugs were estimated to save between $2,300 and $5,000 per year by switching to cheaper alternatives. The level of savings is high enough to cover the so-called "donut hole" (Marketletters passim), whereby patients spending between $2,250 and $5,100 on drugs annually have to find the money themselves. The report examined Medicare drug coverage in six markets across the USA.

Switch 1 branded to generic drug = save $800

The study, Consumer Reports' Best Buy Drugs, compared prices for five common treatment areas: arthritis pain, depression, high-blood pressure, high-cholesterol and post-heart attack care. The locations selected were the US states of Arizona, California, Georgia, Maryland, Minne-sota and Pennsylvania. Beneficiaries who switched only one of the five treatments from branded to generic products were estimated to save up to $800 per year. If all Medicare drug plan subscribers switched from branded statins to generic cholesterol-lowering drug, the savings could top $8.0 billion per year.