Seniors Paying More for Generics Through Medicare Part D, Study Finds

Seniors covered by Medicare Part D are paying more for generic drugs even though the market prices remain stable, according to new research by Avalere, a healthcare consulting firm.

Generics are being placed on higher tiers where patients pay more out of pocket, and the number of generics on the lowest tier — where patients pay less — has steeply declined. Between 2011 and 2015, the number of generic prescription drugs placed on the lowest tier, tier one, declined 53 percent, resulting in a 93 percent increase in total patient cost sharing for the drugs that totaled $6.2 billion.

“This higher cost sharing and movement of generics to higher tiers did not correspond with an increase in the underlying price of generic drugs over that same time period,” Avalere said, based on an analysis of the price of generics included on plan formularies in 2011 and 2015.