Average drug co-pay declined in 2007

ST. LOUIS - Prescription-drug costs are going up, but the average co-payment is going down, according to a study yesterday by pharmacy-benefit manager Express Scripts Inc.

The decrease marks the first time in at least five years that consumers are paying less on average for prescription-drug co-payments, the St. Louis company said.

Express Scripts' 2007 Drug Trend Report shows that the average co-payment dropped 25 cents, to $13.20, while the average total cost of a prescription rose to $55.93 from $55.01. The company analyzed claims data to determine the cost trends.

Express Scripts, which processes more than 1 million prescriptions daily, attributes the decrease to greater use of generic drugs. About 64 percent are now for generics. In 2002, 42 percent were for generics.

"When more generics are used, benefit-plan sponsors can control plan costs without shifting these costs to consumers," said Emily Cox, the company's senior director of research and lead author of the report. She said that, on average, consumers saved $15 per prescription when they chose a generic over a brand-name drug.

The study showed that from 2002 through 2007, the average co-payment for brand drugs preferred by health insurance companies increased $4.52, to $19.18. For brand drugs not preferred by insurers, co-payments increased $11.28, to $28.44.

But for generics, co-payments increased just 86 cents, to $7.57 from $6.71, the Express Scripts report indicated.

Express Scripts said it served more than 55 million customers in the United States and Canada and thousands of benefit-plan sponsors ranging from employers to labor unions and managed-care organizations.

For its most recent fiscal year, Express Scripts earned $567.8 million, or $2.15 a share, on revenue of $18.27 billion.