Seniors are increasingly turning to generic equivalents of prescribed drugs to save costs. New data released by the Centers for Medicare & Medicaid Services (CMS) show that generic-drug utilization exceeds 60 percent in Medicare Part D.

Keeping costs down is good for seniors and it’s good for the program. For every percentage point increase in generic drug utilization, Part D drug spending falls by by an estimated $12 billion over the 2007 to 2015 period.

Keeping drug costs low helps to keep program costs low which in turn keeps Part D premiums from rising for participants. It will also help prevent seniors from falling into the “donut hole” coverage gap.

The Pharmaceutical Care Management Association believes these data should serve as a reminder to policymakers about the need to expand access to generic drugs. At least 14 name brand drugs commonly used by seniors are expected to be in generic form by 2009.

Pharmaceutical Care Management Association