1. Improving Value of Prescription Drug Dollars Gail Shearer Consumers Union BCBSA Briefing on Generic Drugs April 9, 2009

2. Consumer Reports Survey on Rx Drug issues - Highlights 2,004 people 18+ interviewed by phone in Jan 2009, representative sample 881 (44%) take average of four Rx drugs regularly for chronic illnesses Generics were 62% of drugs taken (self- identified) Average monthly OOP cost: $66 but 13% spent more than $100

3. CR Survey Findings - continued Actions to lower costs still high, and now increased with recession 41% of the 881 reporting taking actions to cut Rx drug costs 28% reported not complying - skipping refills, skipping doses, etc Minority group members much more likely to take these actions

4. CR Survey Findings - continued About half (47%) of Americans polled had reservations or misconceptions about taking generic drugs –Different side effects (27%) –Did not trust generic drugs as much as brands (23%) –Not as effective as brand-name drugs (22%) –Do not have to meet the same federal standards (18%) –Not as safe (16%)

6. Identifying CR Best Buy Drugs Start with credible source of unbiased, rigorous analysis of clinical evidence about drug effectiveness (DERP) Intense medical input through consultants, internal CU review, and medical peer review Selections based on effectiveness, safety record, and price

7. Possible Annual Savings: 5 Categories Statins $1,300 (cholesterol) Proton Pump Inhibitors: $1,740 (acid reflux and ulcers) NSAIDs $2,200 (arthritis and pain) Anti-depressants$1,200 Beta Blockers$1,900 (high blood pressure)