Massachusetts challenging for Pharma due to state generic substitution laws and disallowance of coupon

The US State of Massachusetts' generic substitution law and disallowance of prescription drug coupons will remain a challenge for pharmaceutical companies. According to the recent New England Health Plan Analysis, lawmakers have recently rebuffed pharma companies' efforts to allow the use of prescription drug coupons, leaving the state as the only one to disallow the practice.

The report finds that without coupons to offer as an option, pharmaceutical companies will need to be more aggressive in rebating to get to a preferred tier with the state's leading health plans: Blue Cross Blue Shield of Massachusetts, Harvard Pilgrim Health Care and Tufts Health Plan. Otherwise, pharma reps will have to sell the benefits of their drug versus their competition.

"As the state begins to put more focus on adherence to prescription drug regimens and better care coordination, pharma companies must sell doctors on the efficacy of their brand," states Ric Gross, senior market analyst with HealthLeaders-InterStudy, a Decision Resources company. "Any drug proven to show better results, better adherence or a lower cost to administer and monitor, thus bending the cost curve, will gain favor with a prescriber. Drug reps will continue to find Massachusetts a tough environment to operate in when it comes to promoting brands," he added.