Prognosis

Pricing Tactics Slow Uptake of Generic Drugs by Medicare Plans

  • Study finds new copycat medicines take years to win coverage
  • Rebates on branded drugs can leave seniors with higher co-pays
Photographer: Mikael Sjoberg/Bloomberg
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Medicare prescription plans are much slower to cover new generic drugs than private plans, according to an industry study, a sign that many seniors may be overpaying for their medicines.

A research report on Thursday from the Access for Affordable Medicines, or AAM, a lobbying group for the generic-drug industry, shows just 22% of generic drugs are covered by Medicare plans in their first year on the market, compared with the 46% of new copycat drugs covered by commercial drug plans.