When it comes to making determining the drug portion of an employee benefits plan, a bit of education can help employers make a more informed decision.
What is the difference between generic and brand name drugs?
All drugs (brand name and generic) are reviewed and authorized for sale by Health Canada before they are available for prescription.
A generic drug is designed to work the same way in the body as the original brand name drug. Generic drugs have the same active ingredient (the chemical that makes the drug work) and that means they work the same way in the body as the brand name drug.
The non-medicinal ingredients, such as fillers and preservatives, may be different from brand- ame products, but they are also regulated and subject to the same review process by Health Canada.
INTERESTING FACT: The average price of a brand name drug is $85.11 vs only $21.34 for generic.*
And how can this impact the structure of your employee benefits plan?
Knowing that the efficacy of many generic drugs is the same as brand name drugs, you may want to consider limiting your plan to generic pricing.
With the predicted savings, your budget may then allow you to offer a more expanded range of benefits as part of an affordable and sustainable benefits plan.
What happens if an employee wants brand name drugs?
If you only cover generic drugs, employees can still buy the brand name drug at the price difference for the generic drug covered by your company.
Employees can pay the difference between brand name & generic either out-of-pocket, through spousal plan or prescription savings cards.
It's a decision that your Revolution Benefits team will help you with.
When we first start talking, we look at your company's entire financial picture to see what makes most sense in terms of the specific benefits you want to include in the plan for your employees, along with the pros and cons of each.
Our goal is to create a customized plan that balances the needs of your company with the needs of your employees, so everyone wins.
*IMS Health Brogan