Generic Defence Strategies: Targeting Patient Co-Pay -

Published: March 2012 | 41 pgs

Coupons for co-pays are fast becoming a standard part of the brand marketer's toolkit, due to proven positive ROI. It's projected that by 2017, coupons will be associated with 30% of all U.S. prescriptions.

In addition to the impact on market share, advocates of "couponing" tout the benefits of making medications more affordable to patients, enabling them to receive and adhere to the most effective drug, not the cheapest.

However, the tidal wave of coupons is meeting increasing resistance from payers, who argue that when patients request non-preferred brands, healthcare costs simply rise in other areas, leaving the patient no betteroff.

With strong opinions on both sides, what are the facts today, and how will the situation continue to unfold?

Report Overview:

The Generic Defence Strategies: Targeting Patient Co-Pay report gathers current perspectives from experts, to present the latest evidence on both sides of the debate. This timely FirstWord Dossier report presents recent pharma case studies, and provides a detailed review of current distribution practices, showing the successes, and challenges, of coupon programmes. After bringing you up to speed with the latest coupon trends, this comprehensive report provides details of many ways that payers are fighting back against the practice. How can Pharma respond to this changing environment and turn a challenge into an opportunity? For future predictions and practical advice, look no further than this essential report.

Key Report Features:

Recent trends and key drivers in the growth of co-pay coupons
Goals of coupon programmes
Recent Pharma case studies, presenting specific tactics and results
Industry data on coupon response rates and overall ROI
Effects of couponing on consumer perceptions and behaviour
Coupon distribution channels and restrictions
Health plan and pharmacy benefit manager (PBM) reactions
Latest data on the impact of coupons on healthcare costs
Ways that payers are fighting back against coupons
Future predictions, insights, and recommendations

Who Would Benefit From This Report?

This report will be of value to senior pharma directors and managers with responsibilities in the following areas:

Marketing, brand and sales management
Patient adherence
Pricing and reimbursement
Consumer marketing solutions
Advertising and promotion
Business development
CRM and relationship marketing
Multi-channel marketing
Strategic brand planning solutions
Forecasting and marketing professionals

This report will also benefit managed care professionals, pharmacy benefit managers, state and national legislators and health policy researchers.

Key Questions Answered:

Why are drug companies using coupon programmes?
How effective are co-pay coupons in growing market share?
Who is issuing coupons, and how are they reaching consumers?
What restrictions are there on coupon distribution, for example, in Massachusetts?
Why and how are payers and consumer advocacy groups pushing back on coupons?
What new limitations can be expected from the FDA?
How can Pharma and Managed Care work together to distribute coupons that meet the needs of patients and reduce costs?

Expert Views Include:

Lori McLaughlin, corporate spokesperson, WellPoint, Inc
Walt Cherniak, spokesperson, Aetna
Brian Rosman, research director, HCFA
Helen Sherman, PharmD, chief pharmacy officer, RegenceRx
Charles K. Brown, vice president of marketing, NCH Marketing Services
Alyssa Vangeli, policy analyst, HCFA
Matthew Perri, PhD., professor of clinical and administrative pharmacy, University of Georgia College of Pharmacy
Marv Shepherd, Ph.D., director of the Center for Pharmacoeconomic Studies, University of Texas, Austin
Todd Brown MHP, RPh, executive director, Massachusetts Independent Pharmacists Association
Charles Coté, assistant vice president, strategic communications, Pharmaceutical Care Management Association

Key Benefits:

Get up to speed with the pharma industry's current coupon practices
Through recent case studies, assess the effectiveness of coupon programmes
Understand distribution channels and challenges
Gain insight into why Managed Care, PBMs, and consumer groups are increasingly pushing back on coupons
Find out how formulary restrictions and other tactics are making coupons less effective
Receive recommendations for ways that co-pay coupon programmes can be adapted to be effective in the future
Key Quotes:

"Coupons and vouchers provide an important benefit to patients by defraying the cost of out-of-pocket payments, breaking down barriers to access and encouraging better medication adherence."
–Karl Uhlendorf, vice president, Pharmaceutical Research and Manufacturers of America (PhRMA)

"We do not subscribe to the theory that the use of coupons encourages patients to use more expensive drugs," he said. "We do believe that pharmaceutical companies use coupons to increase adherence, which is in the best interest of everyone to do so."
– Todd Brown MHP, RPh, executive director, Massachusetts Independent Pharmacists Association

"They do not reduce the cost of the drug itself and lead to increased drug costs for most employers. This cost shift ultimately adds to the overall cost of health care, which we all pay for."
– Walt Cherniak, spokesperson for Aetna


Formulary management
Co-payment coupons: Numerous goals

> Case study
> Coupons common, growing

High redemption rate

> Coupons affect consumer perception
> PhRMA: Coupons increase adherence

Coupon distribution

> Coupon programmes target manufacturers
> Coupons banned in federal programmes, and Massachusetts
> Opposing Massachusetts ban

Health plan and PBM reaction: Highercosts, safety concerns

> Hidden from PBM/health plan sight
> PCMA report: $32 billion in excess costs

Payers fight back

> Consumer advocates push back

Looking to the future

> FDA to study issue