Informing employees

Most HR departments have already embraced the cost savings generic drugs provide, but some employees remain skeptical, Carlton says. Though there are rare cases in which generics are not compatible with some people, generic medications contain the same ingredients as the corresponding brand-name drugs. Generic drugs are typically effective alternatives, but sometimes it takes a little convincing on the employee side.

"I think the biggest issue or hurdle that we have as a benefits department is working with the insured to assure them that those generic drugs are just as efficient, just as accurate and will work just as well as brand-name drugs," Carlton says. "Sometimes they don't even want to try generic drugs, but once they do try them, most find they are fine and do work as well as the brand-name counterparts."

Still, some employees insist on using the brand-name drugs, Carlton says, and for those who do, they often must pay the difference between the generic and the brand-name drug as well as face a financial penalty. Even if the brand-name medication is prescribed by a doctor, the employee must typically take on those additional costs.

"Requiring the employees to pay more for a brand-name drug when they can get a generic usually at least forces them to try the generic," Carlton says. "Usually, that works, and they don't stay on the brand name."

With all of the brand-name drug advertisements, it can be difficult to convince employees that the generic alternatives are just as effective, Carlton says. Sometimes it seems every TV commercial break is pushing some type of brand-name drug, and this does sway consumers.

But by effectively communicating with employees, HR departments can help their employees embrace generic medications. Most pharmaceutical benefit managers have a system in place to communicate with employees regarding brand-name drug changes.

Carlton says this is effective because it offers an industry expert's point of view, and this may be more reliable to employees. Though she can spend all day telling employees about the safety and effectiveness of generic drugs, sometimes hearing it from an industry source alleviates whatever concerns may exist. Communication from a PBM also eliminates the need for HR departments to get involved, which avoids any potential privacy conflicts, Carlton says.

"A lot of PBMs will send out letters to notify you when you're on a brand-name drug that's losing its patent," Carlton says. "It lets you know about some available generics you can try, and it's coming from the prescription side of it. As an HR department, we don't need to know for privacy reasons what drugs our employees are on."