CBO: Generics saved $33 billion for Medicare Part D in 2007

WASHINGTON Generic drugs saved Medicare Part D beneficiaries and the program as a whole $33 billion in 2007, according to a new report by the nonpartisan Congressional Budget Office. The CBO expected another $14 billion in annual savings to accrue as many new generics enter the market through 2012.

The main lobby for pharmacy benefit managers said the report also showed the advantages of pharmacy benefit managers.

“Tools pioneered by pharmacy benefit managers — including encouraging the use of generic medications — have lowered costs and expanded access to prescription drugs for seniors in Medicare Part D,” Pharmaceutical Care Management Association president and CEO Mark Merritt said.

The generic drug industry lobby hailed the report as well. “This new CBO study is just one of a continued body of evidence proving that generics are a key cost-saving component of our healthcare system,” a statement by the Generic Pharmaceutical Association read.

According to the market research firm IMS Health, generic drugs accounted for nearly 75% of prescriptions dispensed in the United States, but for just more than 19% of dollars spent.