Blue Cross Blue Shield of Michigan said a new generic statin drug to treat and prevent high cholesterol and thus reduce the risk of coronary heart disease and stroke presents the largest single opportunity for prescription drug savings since generic drugs first became available to the American public. Generic drugs are approved by the Food and Drug Administration as safe and effective.

The new generic drug, called simvastatin, is expected to become available at pharmacies as a generic equivalent for Zocor(R), a brand name statin drug used to reduce cholesterol levels. Zocor's patent expired today, clearing the way for the introduction of the generic.

"This new generic drug will help our efforts to moderate prescription drug spending growth trends while continuing to ensure the best possible care for our members," said Thomas Simmer, M.D., Blues senior vice president for health care delivery and chief medical officer. "While using generics cannot eliminate the overall growth in drug costs because there always will be new brand name drugs coming to market, generics can help slow down drug cost increases to more manageable levels."

Blue Cross estimates if its members begin using simvastatin instead of Zocor, groups that purchase its prescription drug coverage could, in total, save more than $70 million annually, and group members could, taken together, save about $6 million every year through reduced copayments. The savings could be even higher if Blues members using other brand name statin drugs switch to the generic under the guidance of their physicians.

Blue Cross pays for approximately one million Zocor prescriptions a year. The company pays for about two million prescriptions a year for all statin drugs, making them the most expensive category of drugs.

The $6 million in estimated member savings are based on those members who have multi-tier drug plans where copays for generic drugs are lower than copays for brand name drugs. The typical out-of-pocket savings for a member with private Blues coverage switching to simvastatin is estimated to be approximately $120 a year.

Blue Cross Blue Shield of Michigan has gained a national reputation for its efforts over the last several years to increase public awareness about the value of generic drugs.

"Generic drugs meet FDA standards for quality, strength, purity and potency," Simmer said. "We will continue to send that message to our members, physicians, pharmacists and other key audiences when generic savings opportunities like this arise."

Since the Blues began promoting generic drugs in late 2001, approximately $300 million in drug costs has been saved for Blues customers, helping to moderate premium increases. Of the $300 million in savings, the Blues estimate its individual members saved $40 million in lower out-of-pocket expenses in the form of reduced copays.

Zocor is one of several widely used brand name drugs coming off patent between now and the end of 2007. The Michigan Blues will be spreading the word as the generic equivalents for other drugs come to market.

Blue Cross Blue Shield of Michigan, a nonprofit corporation, provides or administers health care benefits to just over 4.7 million members through a variety of plans: Traditional Blue Cross Blue Shield; Blue Preferred, Community Blue and Healthy Blue PPOs; Blue Choice Point of Service; Blue Care Network HMO, and Flexible Blue plans compatible with health savings accounts. Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. For more information, visit http://www.bcbsm.com .

Source: prnewswire