Texas Family Benefits specializes in individual, Medicare, and group health insurance in Houston as well as throughout the state of Texas.

Brand-name Drugs Defined

By admin on November 30, 2011 | Listed under Health Insurance Glossary | Leave a comment |

A brand-name drug – prescription drug which is marketed with a specific brand name by the company that manufactures it.  So brand-name drugs may cost insured individuals a higher co-pay than generic drugs on some health plans.

The recent big news on brand-named drugs vs. generic’s is the story on Lipitor.
Lipitor, which became available in 1997 and generated annual sales of $13 billion at its peak, and did 10.7 billion in sales in 2010 from a wsj report, reduces “bad” LDL cholesterol and the risk of heart attack and stroke. It loses U.S. patent protection on 11-30-2011.

As cholesterol fighter Lipitor goes generic, its maker Pfizer Inc. is hoping to hold onto perhaps thirty percent of the 3 million Americans who take the biggest-selling drug of all time.

In health insurance coverage whether individual or group, the Rx or prescription drug part of the coverage is an important part of the insurance protection.  Drugs can be very expensive and very necessary for medical treatment given by a person’s doctor.

Drug coverage that has a copay for prescription drugs is usually tiered. Generic,  brand-name , and non preferred brand or formulary are the most common three tiers.

The lowest co-pay is for generic drugs and today most major drug retailers even have a loyalty card to give people  decent access to low cost generic drugs. This is a big help for people without insurance.  These programs are, OK in my opinion, but are actually a tool of the retailer and give  effective access  for generic drugs ONLY.

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