Generic drugs get a life

Blue Cross Blue Shield of Michigan found that a surprising number of its consumers were fully aware of, and in agreement with, FDA assertions that generic drugs, when available, are equivalent to their more expensive brand-name counterparts. Not only did customers accept this information promoting the safety, effectiveness, and cost savings related to unadvertised brands, but they saw it as Blue Cross' job to advise them of their choices. In fall 2001, the company invited all Michigan pharmacies to participate in a statewide competition to increase their generic dispensing rates. The goal was to increase generic use among Michigan Blue members by one percentage point and, in doing so, produce a $17 million savings for the company and customers. Since the competition and an integrated marketing campaign began, Michigan customers increasingly view Blue Cross as a leader in healthcare cost containment.