Some PBM companies are owned by drug manufacturers. Obviously, this could create a conflict of interest. Because the selection of drugs may be compromised, quality of care could be adversely affected. All parties, including employers and plan members, should be informed of any ownership between PBMs working with the plan and drug manufacturers. A generic drug has the identical chemical composition as its brand-name equivalent, and must meet the same government standards.
Generics are therapeutically equivalent to their brand-name counterparts.
Generic substitutions become available when the patent on the brand name drug expires, and generics are less expensive than brand names. A. Formularies are lists of drugs that a plan will cover. A formulary, which may be a brand name or a generic, is therapeutically similar to another drug, but not necessarily equivalent in its chemistry. Formularies are often referred to as therapeutic substitutions. Many experts argue that formulary drugs are often not interchangeable with the drug for which they are being substituted, and that formulary substitutions can be dangerous to patients.