University of Iowa News Release
July 20, 2006
UI Saves More Than $1 Million In Six Months With No-Cost Generic Drug Plan
By offering generic prescription drugs at no cost through its faculty and professional staff health plans, the University of Iowa already has saved more than $1 million in the first six months of the program.
Under the terms of the program, UI faculty, professional and scientific staff, and merit exempt staff who participate in the UI's health insurance programs -- UICare, UISelect, CHIP 2, and CHIP 3 -- pay nothing for their prescription drugs if those drugs are available as generics. Richard Saunders, director of benefits and payroll in the UI Office of Human Resources, reports that generic prescription usage increased from 47 percent in 2005 to 53 percent as more UI staff and faculty ask for generic drugs in place of the name brands.
"We expected a substantial savings, but these results exceed our expectations," says Saunders. The new program was put in place in January after it was endorsed by the university's Funded Retirement and Insurance Committee, a committee of faculty and staff who recommend benefit and insurance policies for the UI.
STORY SOURCE: University of Iowa News Services, 300 Plaza Centre One, Suite 371, Iowa City, Iowa 52242-2500.