Pricing Tactics Slow Uptake of Generic Drugs by Medicare Plans

Medicare prescription plans are much slower to cover new generic drugs than private plans, according to an industry study, a sign that many seniors may be overpaying for their medicines.

A research report on Thursday from the Access for Affordable Medicines, or AAM, a lobbying group for the generic-drug industry, shows just 22% of generic drugs are covered by Medicare plans in their first year on the market, compared with the 46% of new copycat drugs covered by commercial drug plans.

Even after three years on the market, only around half of new generics will have been added to the ...