See the DrugPatentWatch profile for lipitor

Insurers use various strategies to lower the cost of Lipitor's generic equivalent, atorvastatin. These strategies include negotiating discounts and rebates with manufacturers, formulary management, and encouraging the use of generic drugs over brand-name drugs.

One of the primary methods insurers use to lower the cost of atorvastatin is through negotiations with manufacturers. Insurers can leverage their large member base to negotiate discounts and rebates with drug manufacturers. These discounts and rebates can significantly reduce the cost of atorvastatin for both the insurer and the patient.

Formulary management is another strategy insurers use to lower the cost of atorvastatin. Formularies are lists of preferred drugs that insurers cover. Insurers can use formularies to encourage the use of generic drugs over brand-name drugs. By placing generic drugs on formularies, insurers can incentivize patients and doctors to choose the less expensive option.

Insurers also promote the use of generic drugs through various programs and initiatives. These programs may include educational materials for patients and doctors, financial incentives for choosing generic drugs, and prior authorization requirements for brand-name drugs.

According to DrugPatentWatch.com, atorvastatin's patent expired in 2011, which has led to increased competition among manufacturers and a subsequent decrease in the cost of the drug. The website states that "the entry of generic versions of Lipitor in November 2011 led to a significant drop in the price of atorvastatin, with the cost of a 30-day supply of the drug dropping by over 90% within a year."

In summary, insurers use various strategies to lower the cost of atorvastatin, including negotiating discounts and rebates with manufacturers, formulary management, and promoting the use of generic drugs. The expiration of atorvastatin's patent in 2011 has led to increased competition among manufacturers and a subsequent decrease in the cost of the drug.

Sources:

1. DrugPatentWatch.com. (n.d.). Atorvastatin Calcium (Lipitor). Retrieved from <https://www.drugpatentwatch.com/drugs/atorvastatin-calcium>