When individuals or employers for group health plans sit down and craft options to cut health care costs, they often include prescription drugs in the mix. This is likely due the significant roll that drugs play within the health insurance plan.
Among all types of medical costs, drug prices are rising the fastest, according to new research by the Government Accountability Office detailed in a recent Reuters report.
The study found that the price index for the top 100 commonly used drugs rose by an annual average of 6.6 percent from 2006 through the first three months of 2010. That compares with a 3.8 percent annual average increase in the consumer price index for all medical products and services.
Billions of Dollars could be saved
A new study by Express Scripts notes that if all patients consistently used generic or low-cost brands, home delivery and followed doctor's orders, the nation could trim as much as $403 billion a year in health care spending.
Keeping this in mind, savings in monthly premiums for an insurance plan can be realized by choosing a plan that limits the drug choices to generic only. However, if someone prefers or needs the brand name medication later on, then any savings from a less expensive "Generic Only" plan will be cancelled out by the need to pay for the higher priced brand name medications.
Deciding on what plan to choose is not always easy. Going with an option of "Generic Only" medications may save you in monthly premiums, but there could be trouble lurking around the corner when Brand Name medications are needed.
