See the DrugPatentWatch profile for lipitor

Insurers' formulary tiers play a significant role in shaping the prices of generic medications, including Lipitor's generic version, atorvastatin. A formulary tier is a classification system used by health insurance companies to categorize medications based on their cost and clinical effectiveness.

According to a study published in the Journal of Managed Care & Specialty Pharmacy, formulary tiers can influence the prices of generic medications in several ways [1]. First, insurers may negotiate better prices with manufacturers for medications in lower-tier formularies, which can lead to lower prices for patients. Conversely, medications in higher-tier formularies may have higher prices due to lower demand and less negotiating power.

In the case of atorvastatin, the generic version of Lipitor, its price has fluctuated over the years due to various factors, including changes in formulary tiers. According to DrugPatentWatch.com, the patent for atorvastatin expired in 2011, allowing generic manufacturers to enter the market [2]. However, the prices of generic atorvastatin have remained relatively high, partly due to the medication's high demand and the lack of strong competition.

Insurers' formulary tiers can also impact the prices of generic medications by influencing the medications' placement on the formulary. Medications in lower-tier formularies may be more likely to be preferred by patients and insurers, leading to higher demand and, subsequently, higher prices. In contrast, medications in higher-tier formularies may be less preferred, leading to lower demand and potentially lower prices.

In conclusion, insurers' formulary tiers can significantly impact the prices of generic medications like atorvastatin. The placement of a medication on a formulary can influence its price, with medications in lower-tier formularies potentially having lower prices due to higher demand and better negotiating power.

Sources:

[1] Journal of Managed Care & Specialty Pharmacy. (2018). The Impact of Formulary Tiers on Medication Prices. Retrieved from <https://www.jmcp.org/doi/abs/10.18553/jmcp.2018.24.5.541>

[2] DrugPatentWatch.com. (n.d.). Atorvastatin. Retrieved from <https://www.drugpatentwatch.com/patent/US-6-949-444>

Note: The sources cited are the primary sources used in this response.