Seniors Are Paying More for Generics Even Though the Drug Prices Haven't Increased

An analysis by Avalere Health, which studied trends in co-pay charges for enrollees in Medicare Part D, found out-of-pocket generic drug costs for seniors on Medicare nearly doubled even though the price of the medications has not risen since 2011, reports the Los Angeles Times . Avalere says the insurers have been shifting many generics into co-pay tiers that require beneficiaries to pay larger portions of the drugs' cost, letting them keep Part D premiums stable. In 2011, 71 percent of covered generics were placed in tier 1, the lowest, carrying the smallest co-pays. By 2015, only 19 percent of covered generics were still in that tier, while about 46 percent had been moved to tier 2 and 35 percent to tier 3 or higher. Total out-of-pocket costs for the same group of generics rose 93 percent from 2011 through 2015, while average generics prices increased only 1 percent and the volume of generics purchased rose only 22 percent. The difference almost wholly stemmed from higher co-pays charged per prescription by insurers. Particularly worrying is that among the generics subject to the up-charges are some of the most widely prescribed and least expensive for seniors, including for chronic conditions such as cholesterol, hypertension, and diabetes.