Increasing use of generics would save money amid sequester, GPhA tells members of Congress
WASHINGTON — Amid a tide of automatic spending cuts resulting from the failure of Congress and the White House to agree on a budget, the generic drug lobby has offered some suggestions to generate savings.
The Generic Pharmaceutical Association, an industry trade group, sent letters to members of the House and Senate outlining six ways to increase use of generic drugs, which it said would save money: Encourage generic drug use for the Medicare Low Income Subsidy population; close loopholes in the current REMS strategy; pass policy prohibition against state-level carve-out laws that restrict use of certain generics; integrate incentives for generic use and adherence in chronic management reforms; restrict the exclusivity for biotech drugs from 12 years to seven; and increase Medicaid payments to states that increase the use of the least costly drugs available.
"So many ways to cut costs require enormous sacrifice," GPhA president and CEO Ralph Neas said. "But generics have proven that drug-cost reductions are available while maintaining safety, efficacy and improved health outcomes. We can offer patients quality, FDA-approved medicines at a fraction of the price and save billions in the process."