BestWeek: Debate Sparked on Generic Drugs After Discounts Taken on Brand-Name Drug Zocor.OLDWICK, N.J. -- For years, U.S. health insurers have encouraged members to save money by switching to generic drugs as cheaper alternatives to costlier, brand-name counterparts. But some health insurers have sparked a debate by accepting discounts from drug manufacturer Merck & Co. in exchange for preferred placement on their drug formularies for Merck's brand-name cholesterol drug Zocor, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a story in the July 17 BestWeek. Zocor, the brand name for the cholesterol-reducing drug simvastatin simvastatin /sim·va·stat·in/ (sim´vah-stat?in) an antihyperlipidemic agent that acts by inhibiting cholesterol synthesis, used in the treatment of hypercholesterolemia and other forms of dyslipidemia and to lower the risks associated , was the drugmaker's top product in 2005, pulling in $4.4 billion in gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. . Babette Edgar, vice president of strategic development at Gorman Health Group, a managed care industry consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , said Merck is offering to health plans a contract under which the price of Zocor is less than the generic equivalent that's on the market now. Also featured in BestWeek is Best's Insurance Composite Index Composite Index A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known simply as a "composite". , which finished the week of July 13, 2006 at 1,085.86, up 3.3% from a year ago. The composite index reflects the performance of 133 insurance stocks. The week's top performers were UnitedHealth Group Inc.; AmerUs Group Co.; EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. Insurance Group Inc.; Max Re Capital Ltd.; and Cigna Corp. The week's bottom performers were Penn Treaty American Corp.; United Fire & Casualty Co.; Navigators Group Inc.; Independence Holding Co.; and Tower Group Inc. BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe to BestWeek, please call A.M. Best's customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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