Your costs

While it may feel reassuring to ask for a medication by its brand name, remember that the more familiar you are with a brand, the more likely it is that you'll pay more for it.

Prescription copayments

Prescriptions account for a quarter of the total cost to provide medical treatment. And prescription copayments are rising fast. In 2001, the average Priority Health prescription copayment was $9.30; in 2003 it was $13.95. That's an increase of 50 percent in just two years.

Total drug cost

Yet even as copayments increase, members are still responsible for only a small percentage of the total drug cost. In 2003, the average cost of a brand-name prescription was $87.44, while the average cost of a generic prescription was $14.93. What's more, brand-name drugs such as Prilosec, Prevacid, and Nexium cost approximately $120 a month, while the generic Prilosec OTC (the same chemical as Prilosec) costs approximately $30 a month.

What do total drug costs have to do with you? After all, if you're only responsible for your copayment, and someone else is paying the rest, isn't it their problem? The answer is simple, really. The overall cost of prescription drugs affects the rates insurance companies charge in premiums. When the cost to your insurance company falls, your cost falls.

How we contribute to drug costs

Rising health care costs are also linked to America's aging population and our attitudes toward prescription drugs.

• Demographics:
  We are living longer. An aging population means an increase in the number of diseases that can be treated successfully with drugs. This demographic shift results in increased consumer demand as well as the demand for new drug development.
• Increased drug use:
  Prescription drug use is on the rise. Over the past 20 years, pharmaceutical companies have been able to develop drugs to better treat a variety of health conditions, such as diabetes, high cholesterol, allergies, pain and depression. These drugs are expensive to develop and market. Higher demand and use result in higher costs for consumers.
• Public perception:
  We tend to believe that higher cost equals better quality. However, less expensive generic drugs are just as effective as their brand-name versions. Patients who have drug coverage only pay a small percentage of the actual cost of the drugs, and we generally pay attention to our copayment, not the overall cost. In addition, our culture in general tends to believe that we are entitled to all health care services and drugs regardless of what they cost.