WINTER 2002
Welcome to the first edition of JWR’s HealthCare Bulletin. Its purpose is to inform JWR employees, their dependents and retirees of the latest healthcare trends. It will also provide information how these trends relate to your healthcare benefits. Each issue will focus on a different topic. This issue’s focus is generic drugs.

GENERIC DRUGS

What is a generic drug? Generic drugs are clones of brand name products that aren’t protected by patents any longer. At that point, other companies are free to make equivalent drugs with the same active ingredients. A generic version must be the same strength and the same form as the name brand drug, and be absorbed at the same rate and have the same effect. Because of inactive ingredients—such as filler, flavoring, and color— generic drugs do not resemble their name brand competitors in appearance. Talk to your physician for his or her opinion on the generic alternative for your prescriptions. Check with your pharmacist, too. Then just make sure your doctor knows about your decision, so you both can make adjustments if necessary when switching to generic drugs.

Why is there such a difference in the price for the same product? Keep in mind the profit margins on pharmaceuticals are enormous. Most of the dollars are spent on advertising and promotion, to convince you that a particular brand is better than competing ones. An example is the antibiotic Keflex and its generic equal, Cephalexin. Both drugs perform the same with the only difference being their price. The name brand Keflex costs $102.69 for a 30-day supply while the generic equivalent costs only $21.39 for a 30-day supply. "Generic manufactures need to prove that their drug is bio-equivalent," says Gary Buehler, Director of the Office of Generic Drugs for the Food and Drug Administration. "This means the generic drug must deliver the same amount of active ingredients into the bloodstream and in the same amount of time as the name brand drug."

Should you always use generic drugs? First you should always discuss with your doctor what prescription is right for you. There is a good chance an equally effective name brand drug alternative or generic drug is available. There is a small group of prescription drugs known to have a narrow therapeutic index (NTI). Most NTI drugs are used to treat serious medical conditions, such as asthma, heart attack, stroke, epilepsy, and depression. Some examples of NTI drugs include Digoxin, Synthroid, Theo-Dur, Dilantin, and Lithium. You should not switch from name brand drugs to generic drugs or vice versa without your prescribing physician’s approval and close supervision.

Why should I be concerned with the cost, our insurance will pay for it? Jim Walter Resources is self-insured which means we do not pay a premium to an insurance company to cover our employee’s medical costs. Each visit to a doctor’s office, every trip to the emergency room, every minor and major surgical procedure and every pharmacy prescription filled is paid for entirely by Jim Walter Resources, not an insurance company. BlueCross BlueShield of Alabama manages your health plan but JWR pays for it.

How much does JWR pay for healthcare benefits? This year JWR will pay over $27.5 million for health care benefits for its members. This adds over $4.00 per ton to the cost of our coal. Again, the well being of our members is the first priority of our health care plan, but without careful management the competitiveness of Jim Walter Resources with other coal producers is greatly affected.

In an average month, Jim Walter Resources pays to have 12,000 pharmacy prescriptions filled.  You may ask, "What does that have to do with me?  My doctor says my family needs these prescriptions and I'm going to make sure they have the."  You will get no argument about the need for physician ordered medications from JWR.  But if you use generic drugs when available, JWR can save an average of 30-75% on each prescription.  By choosing generic drugs, we can work together to lower health care costs without reducing the quality of care.