Healthcare Trends & Surveys

Brand-Name Drugs Are Costly

Brand-name drugs are increasingly becoming a consumer luxury as more and more managed care plans start to adopt a three-tier co-payment system.

The system, widely regarded as a mixed blessing for health plan members, gives managed care a tool for passing pharmaceutical costs on to consumers by charging:

  • the lowest price for generic drugs;
  • a higher price for brand-name drugs that are included on the plan's formulary; and
  • the highest price for non-formulary brand-name drugs.