The Generic Drug Cost Problem

Historically, employers have looked at generics as a cost saving strategy because the cost of generic medications has been significantly lower than the cost of brand name medications. Surprisingly, however, over the last couple of years, the trend for some generics has not followed this historical pattern. Between July ’13 and July ’14, 50% of generic medications increased in price; more than one quarter increased by 10%, and 18% increased by 25%. Some even increased by 100%. (Marsh & McLennan Agency LLC)