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GPhA Statement on Proposal to Assist Patients Who Reach the Medicare “Doughnut Hole”

Arlington, VA, June 22, 2009 – The Generic Pharmaceutical Association (GPhA) released the following statement today from GPhA President and CEO Kathleen Jaeger regarding the proposal by the brand pharmaceutical industry to reduce the costs of brand prescription medicines for patients who reach the “doughnut hole” under the Medicare Part D prescription program.

“Although we have not reviewed the details of this proposal, we welcome the news that PhRMA has proposed action that will reduce costs for seniors who find themselves in the Medicare prescription drug coverage doughnut hole and need to take a brand medicine when a generic version is not available.

“According to a recent IMS Health study, generic medicines saved the health care industry more than $734 billion in the last decade. And today, generics save the health care system $1 billion every three days; providing the financial headroom to support innovative medicine and other health benefits. Each and every day, generic medicines are already offering seniors the same medicines with the same results as brands, but at much lower costs. The use of affordable generics, and a reduction in the cost of brand medicines when a patient reaches the doughnut hole, is a combination that can help Medicare patients remain healthy.”

GPhA represents the manufacturers and distributors of finished generic pharmaceuticals, manufacturers and distributors of bulk active pharmaceutical chemicals, and suppliers of other goods and services to the generic drug industry. Generics represent 69% of the total prescriptions dispensed in the United States, but only 16% of all dollars spent on prescription drugs. For more information about the industry, visit www.gphaonline.org.
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