In a move that brings lower drug prices to nearly half of its 4.6 million Medicare members, Humana (NYSE: HUM) has announced it will offer zero-dollar copayments for eligible Humana Medicare members ordering Tier 1 (preferred generic) drugs from RightSourceSM starting in January 2008. RightSource is the company’s preferred prescription home delivery service. RightSource sends up to a 90-day supply of medications directly to members’ homes and offers an opportunity to manage and reduce prescription drug costs.
This savings opportunity will be available for members in Humana’s Enhanced and Complete stand-alone Medicare Prescription Drug Plans as well as most members in the company’s Medicare Advantage plans.
Humana’s zero-dollar copayment benefit includes over 2,200 generic prescriptions in a variety of dosages and solid or in liquid forms. The generic drugs, known as Tier 1 (preferred generics), includes many well-known drug types and are prescribed for numerous chronic conditions such as high cholesterol, high blood pressure, and diabetes. Using RightSource may also offer members additional savings opportunities for drugs in Tiers 2 and 3, which include covered brand-name drugs with higher copayments.
“The zero-dollar copayment for preferred generic drugs could potentially help millions of our Medicare members,” said William Fleming, Humana’s vice president of pharmacy. He noted that about 60 percent of Humana’s Medicare prescription drug claims are for Tier 1 drugs, adding, “Generics contain the same active ingredients as ‘brand-name’ counterparts, and are equally effective. Including RightSource for prescription drug home delivery can save Humana’s Medicare members money, particularly as they get into the coverage gap,” he said, referring to the Medicare prescription drug benefit gap between the initial coverage limit and the catastrophic coverage threshold.
For members using RightSource in 2008:
Medicare PDP Complete Plan members pay zero-dollar copayments for preferred generics during the first two stages of the prescription drug plan, and a zero-dollar copayment in the coverage gap. During the catastrophic coverage stage, members pay whichever is greater — five percent co-insurance, or $2.25 for a preferred generic drug.
Medicare PDP Enhanced members and most MAPD plan members pay zero-dollar copayments for preferred generics during the first two stages of the prescription drug plan. Members pay 100 percent in the coverage gap until the yearly out-of-pocket drug costs reach the catastrophic coverage stage. At that point, members pay whichever is greater — five percent co-insurance, or $2.25 for a preferred generic drug.
Humana’s plans and services offer guidance to help members choose, manage, and use health benefits with confidence and success. In 2006, Humana opened RightSource, its state-of-the-art mail-order facility. Members benefit from RightSource’s strong buying power where savings are passed along to them.
Humana’s list of 2008 Tier 1 (preferred generics) may be found at Humana’s website, www.humana-medicare.com.
Treatment options, including generic prescription drugs, should be discussed with a doctor.
About Humana
Humana Inc., headquartered in Louisville, Kentucky, is one of the nation’s largest publicly traded health benefits companies, with more than 11.3 million medical members. Humana offers a diversified portfolio of health insurance products and related services — through traditional and consumer-choice plans — to employer groups, government-sponsored plans, and individuals.
Over its 46-year history, Humana has consistently seized opportunities to meet changing customer needs. Today, the company is a leader in consumer engagement, providing guidance that leads to lower costs and a better health plan experience throughout its diversified customer portfolio.
More information regarding Humana is available to investors via the Investor Relations page of the company’s web site at www.humana.com, including copies of:
Annual reports to stockholders;
Securities and Exchange Commission filings;
Most recent investor conference presentations;
Quarterly earnings news releases;
Replays of most recent earnings release conference calls;
Calendar of events (includes upcoming earnings conference call dates and times, as well as planned interaction with research analysts and institutional investors);
Corporate Governance information
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