Changes in Prescription Drug Co-Pay

The office of Human Resources at Utah State University is distributing a memo to Utah State University faculty and staff concerning important changes in the prescription drug co-pay policy, a part of the university's benefits package. The memo follows:

MEMO:

To: All Utah State Employees

From: Office of Human Resources, Benefits Administration

Re: IMPORTANT CHANGES in PRESCRIPTION DRUG CO-PAY

Dear Utah State University Employee:

On July 1, 2004 the employee prescription plan moved to a flat dollar co-pay as compared to the previous percent co-pay. The flat dollar co-pay per prescription was approved following a recommendation from the University’s health benefits committee, comprised of representatives from our faculty, professional and classified employee groups. It was intended to cover a 30 day supply of drug doses per co-pay for the flat dollar amount. Due to an oversight in the policy language for the Plan Year 2004-2005, the prescription co-pay allowed for 60 days or 100 doses per co-pay. This oversight will be corrected to be in alignment with its original intent as outlined below effective February 1, 2005:

$25 co-pay for each drug unit of a brand prescription drug without a generic equivalent. The “brand” prescription drug unit is defined as up to, but not to exceed, a 30 day supply.
$35 co-pay for each drug unit of a brand prescription drug with a generic equivalent. The “brand” prescription drug unit is defined as up to, but not to exceed, a 30 day supply.
$7 co-pay for each generic prescription drug unit. The “generic” prescription drug unit is defined as up to, but not to exceed, a 90 day supply (no change in plan).

You will note that the “generic” prescription unit includes up to a 90 day supply. This results from the very positive direction of increased use of generic prescription units. With the 90 day supply remaining as an added benefit it is anticipated that usage of “generic” prescriptions will continue to increase. Employees are encouraged to use “generic” prescriptions whenever possible to minimize the increasing costs.

After careful review of the data, it has been determined that it is important to address this issue now, rather than later. For example, this past quarter, compared to the same quarter a year ago, we have experienced a dramatic increase in prescription costs. If this trend continues, we could potentially draw down our reserve by the end of the fiscal year making it necessary to pass the additional costs to all of us next year.

Please call Irene Whittier at 797-1817 or DeeAnn Christensen at 797-0122 to answer any questions or concerns that you may have regarding this change.